Informal economy needs a reboot

The informal sector provides an alternative when formal sector jobs are hard to find.

Globally, around 2 billion workers are engaged in the informal economy , depriving governments of vital taxes. Countries with higher levels of informality in jobs are likely to have lower labour productivity, slower physical and human capital accumulation, less access to finance, and smaller fiscal resources. A blanket transformation of these workers under the umbrella of formality may help; however, difficulty in tracking, minimised documentation and administrative hassles are acting as bottlenecks.