The number of people engaged in informal employment has risen in the past decades in developing countries, despite the achieved economic growth. The trend is called “informalization”. It can be ascribed to the decline in average per capita GDP growth. The conditions in developing countries have undergone a major transformation.
Informal forms of employment include, agricultural day labourers, urban street vendors, paid domestic work, or at-home producers of clothing or other manufactured goods. A high proportion of informal workers are self-employed. In most countries, women are employed in such informal jobs. The income of the workers received from informal employment is very low. These workers and their families have to live at the edge of poverty or even under the poverty-level.
Informal jobs are outside of the sphere of government’s supervision over the labour markets. This means the informal workers do not have formal contract that might protect them to a certain level from losing their job. They are not protected regarding the working hours, health and safety at the working place. Their wages and the fact whether they will get them on time and in full sum are not embedded in any formal document that would ensure its validity and the right to be executed. Such workers are not given any type of mandated benefits that would normally be a feature of “formal” employment opportunities, either in private sector firms or in the public sector.