Informal Jobs

Without training, technology will remain out of reach for many.

In the last decade, informal jobs have mushroomed in Pakistan. Part of the reason is the high income tax levy which makes small firms contain costs by hiring cheap labour for informal jobs. Historically, societies have not been able to grow economically without a structured job market. In Tanzania, Ethiopia and the Czech Republic, for example, cheap labour coupled with the scarcity of capital made informal labour predominate even in industry. Clearly, these economies have suffered stagnation as opposed to Taiwan and Vietnam, where the main driver of growth was the formal jobs sector.