valentina stoevska ([email protected])[email protected] department of statistics international labour...

Valentina Stoevska ([email protected])

Department of Statistics

International Labour Office- Geneva

1International Labour Organisation, Department of Statistics

Limitations of the current MDG Indicator 3.2 Growth of the employment in informal sector (IS)/

informal employment (IE) Statistical definitions of the employment in

informal sector and informal employment Some findings re employment in informal

economy References


- non-agricultural wage employment represents only a small portion of total employment,

- contribution of women to the national economy underestimated and misrepresented

- difficult to interpret, - does not reveal that there are different types of

non-agricultural wage employment


- Employment by sector (agriculture, industry , services),

- Wage employment in agriculture,- Employment by status in employment

(employees, employers, contributing family members, etc.),

- Employment in managerial occupations,- Employment in the informal economy,- ... More comprehensive picture of the women

situation in the labour market, and changes


Growth of the informal economy Employment creation, income generation and

poverty eradication but workers lack legal and social protection.

Informalisation of employment is partly attributable to ‘globalisation’ process: competitive pressure on enterprises leads to mixed-mode labour arrangements (non-standards, atypical, irregular, precarious):

Exists everywhere (incl. industrialised countries), and in the formal sector◦ Relevance and meaning varies by country


Survival strategy: lack of other jobs, obstacles to employment in the formal sector, need to supplement family income

Independence, Flexible work arrangements, Profitable income-earning opportunity, Non-compliance

◦Regulations, tax payments, social security contributions reduced production costs


‘Employment in the IS’ and ‘informal employment’ refer to different aspects of the «informalisation» of employment

Employment in IS: employment in informal enterprises. -defined in terms of characteristics of production units/enterprises (enterprise based)

Informal employment: employment in informal jobs.- defined in terms of characteristics of persons or their jobs (job based)

Employment in the informal economy defined as the sum of jobs in the informal sector and of informal jobs outside the informal sector.


8

Production units

Informal jobs Formal jobs

Informal sector enterprises

A B

Other units of production

C DEmployment in the informal sector: A + B

Informal employment: A + C

Informal employment outside the informal sector: C

Employment in the informal economy: A + B + C

Employment in the informal sector: A + B

Informal employment: A + C

Informal employment outside the informal sector: C

Employment in the informal economy: A + B + C

International Labour Organisation, Department of Statistics

Private unincorporated enterprises, Not constituted as separate legal entities, No complete accounts available, At least some goods or services produced are

meant for sale or barter, Enterprise size below low threshold,: Enterprise not registered under specific forms of

national legislation at national level, Engaged in non-agricultural activities.


Total number of informal jobs carried out in formal sector enterprises or in informal sector enterprises or in households

◦ during a given reference period.

Employees are considered to have informal jobs if not covered by social security system or not entitled to other employment benefits such as paid annual or sick leave.


Employees In informal jobs in formal sector enterprises, Paid domestic workers employed by households.Contributing family workers Working in formal sector enterprises.Own-account workers Engaged in goods production exclusively for final

use by own household (if employed according to 13th ICLS employment definition).


International Labour Organisation, Department of Statistics 12

Source: ILO, Department of Statistics14International Labour Organisation, Department of Statistics

Source: ILO, Department of Statistics



Informal employment in non-agricultural activities by sex for selected countries, %


Informal employment outside informal sector, in non-agricultural activities, by sex for selected countries, %


Employment in informal sector, non-agricultural activities, by sex for selected countries, %

Tanzania: Employment in informal sector as percentage of total employment

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Urban, 1990 National, 1991 Urban, 1995

Total Male female


Resolution concerning statistics of employment in the informal sector (adopted by the Fifteenth International Conference of Labour Statisticians,1993)

Guidelines concerning a statistical definition of informal employment (adopted by the Seventeenth International Conference of Labour Statisticians, 2003)http://www.ilo.org/global/statistics-and-databases/standards-and-guidelines/lang--en/index.htm

LABORSTA, an International Labour Office database on labour statistics operated by the ILO Department of Statistics http://laborsta.ilo.org


valentina stoevska ([email protected])[email protected] department of statistics international labour...

Documents

c informal employment

b informal employment

employment employees

informal enterprises

b c employment

informal economy references

department of statistics

sector agriculture