1. Inter-related, NOT Interchangeable
Informality
Informal economy
Informal sector
Informal employment
Inter-related, NOT Interchangeable

2. Informality as you see it
In your own language what terms refer to: informality, informal economy, informal sector, informal employment
Definitions: informal economy, informal sector, informal employment
Do these currently exist, officially, whether in law or as an official statistical definition in your country?
For those that exist, how do you define them?

3. Guidance … Work Employment Informal employment
Recommendation concerning the transition from the informal to the formal economy
(ILC R204, 2015)
Resolution concerning statistics of work, employment and labour underutilization (19th ICLS, 2013)
Work
Measuring informality: A statistical manual on the informal sector and informal employment
(ILO, 2013)
Resolution concerning statistics of the economically active population(13th ICLS, 1982)
Resolution concerning statistics of the economically active population(13th ICLS, 1982)
Employment
Guidelines concerning a statistical definition of informal employment
(17th ICLS, 2003)
Resolution concerning statistics of employment in the informal sector (15th ICLS, 1993)
Informal employment
Employment in Informal sector

4. Informal Economy … associated with
Entrepreneurial activities/enterprises: capable of independent dynamic growth
Survivalist activities/enterprises: not capable of dynamic growth without support
Subordinated activities/enterprises/workers: dependent on or exploited by large formal sector ; e.g. value chains of production
Criminal-underground activities/units: dealing with illegal goods or services or activities which are not declared to avoid paying taxes,etc.
Note to Marge: Transform into a set of questions– T or F?

5. Those not covered or insufficiently covered by formal arrangements
“… the term “informal economy” refers to all economic activities by workers and economic units that are – in law or in practice – not covered or insufficiently covered by formal arrangements”
Economic units in the informal economy
… to get to this point
Those not covered or insufficiently covered by formal arrangements
Workers in the informal economy
Recommendation 204

6. Formal Arrangements Procedures established by the government
To regulate the actions and functions of economic units
To recognise the economic units and protect their legal rights
To carry out economic activities, to engage in commercial contracts, to safeguard their intellectual and physical property, etc.
Procedures to report economic activities, employees
In order to pay taxes (on production, on sales)
In order to cover employees for social security, etc.

7. Two Aspects; Two Statistical Units
Informal employment
(worker/job-based)
Informal sector
(enterprise-based)
Two different aspects of informal economy
Important to keep separate as often require different policies
Important to understand the relation between them

8. … “Non-Observed Economy”

9. Employment in the Informal Economy
Production units
Informal jobs
Formal jobs
Informal sector enterprises A B
Other units of production C D
Employment in the informal sector: A + B
Informal employment: A + C
Employment in the informal economy: A + B + C
The identification of the informal sector is crucial in all concepts

10. Minimum Set of Data Items on the Informal Economy
Number of economic units that are in the informal sector (informal sector units)
Production, value added (Input to SNA)
Number of informal sector entrepreneurs
Number of workers and jobs in the informal sector

11. Significance of the Informal Economy
The informal economy is large by whatever measure is used:
share of total employment
share of total enterprises
share of total GDP
Note to Marge: Transform into visual

12. INFORMAL ECONOMY– KEY MACRO-ECONOMIC INDICATORS IN MEXICO
Informal Economy as a Share of GDP, by Component. Series
Year
Informal Economy
Informal Sector
Other Forms of Informality
2003
27.2
11.8
15.4
2004
26.5
11.3
15.2
2005
26.3
15.0
2006
25.6
10.7
14.9
2007
25.5
10.4
15.1
2008
25.3
9.5
15.8
2009
26.8
12.3
14.5
2010
26.2
11.7
14.6
2011
25.7
14.0
2012
25.4
11.2
14.2
2013
24.9
13.6
2014R
23.9
12.8
2015P
23.6
R Revised figures as from date indicated.
P Preliminary figures as from date indicated.
Source: INEGI. SNA, Measuring the Informal Economy; October 11, 2017, from

13. Size and composition of the informal economy % informal employment (estimates for 2016)
Note: based on 118 countries representing 90 percent of global employment and estimated missing values. Estimates for Harmonized definition of informal employment (no registration or no complete set of accounts to define the informal sector and informal employment among own-account workers and employers; no social security gained through employment or, in case of missing, neither annual paid leave, nor paid sick leave to define informal employment among employees; all contributing family members are in informal employment). Limited number of countries for the Arab States, not displayed on this graph. Source: ILO calculations based on national household surveys

14. Reflections on:
What you know about the informal economy policy issues in your country and how your statistical definitions serve policy needs
What are your data needs and prospects for collecting the data on the informal economy