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The Informal Sector
Poverty alleviation and job creation - The dilemma of developing countries
Different sectors, common goals |
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Poverty alleviation and job creation |
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 or many local and national governments in developing countries, the goal of poverty alleviation, coupled with job creation, remains a key for overall development. These challenges are exacerbated by an increasing proportion of its population that is migrating to cities and urbanized areas.
Amist a lack of action from governments, the informal sector thrives for precisely the same reason - to alleviate poverty and create jobs. How can we change our attitudes to the informal sector and understand its true contribution to developmental processes, even if transitionary? |
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Employment Cushion:
During crises such as COVID-19, informal employment absorbed 70 percent of job losses in developing economies, acting as a critical shock absorber.
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Income Inequality:
Informal workers earn on average 40 percent less than formal workers in similar occupations, deepening vulnerability even when employment is high.
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Women's Share:
Globally, 58 percent of working women are informally employed, rising to 92 percent in South Asia, underscoring the sector's role in both empowerment and exploitation.
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