Resolution I: Resolution concerning statistics of the informal economy, the 21st ICLS

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Preamble

The 21st Internat(i)onal Conference of Labour Stat(i)st(i)c(i)ans (ICLS),

Hav(i)ng rev(i)ewed the relevant texts of the resolut(i)on concern(i)ng stat(i)st(i)cs of employment (i)n the (i)nformal sector, adopted by the 15th ICLS (1993), and the Gu(i)del(i)nes concern(i)ng a stat(i)st(i)cal def(i)n(i)t(i)on of (i)nformal employment, endorsed by the 17th ICLS (2003),

Tak(i)ng (i)nto cons(i)derat(i)on the resolut(i)on concern(i)ng stat(i)st(i)cs of work, employment and labour underut(i)l(i)zat(i)on, adopted by the 19th ICLS (2013), the resolut(i)on concern(i)ng stat(i)st(i)cs on work relat(i)onsh(i)ps, adopted by the 20th ICLS (2018), and the resolut(i)on concern(i)ng decent work and the (i)nformal economy, adopted by the Internat(i)onal Labour Conference at (i)ts 90th Sess(i)on (2002), as well as the Trans(i)t(i)on from the Informal to the Formal Economy Recommendat(i)on, 2015 (No. 204), the ILO Declarat(i)on on Fundamental Pr(i)nc(i)ples and R(i)ghts at Work (1998), as amended (i)n 2022, and the ILO Centenary Declarat(i)on for the Future of Work (2019),

Recall(i)ng the requ(i)rements of the Labour Stat(i)st(i)cs Convent(i)on, 1985 (No. 160), and the accompany(i)ng Labour Stat(i)st(i)cs Recommendat(i)on, 1985 (No. 170), and the need for coherence w(i)th other (i)nternat(i)onal stat(i)st(i)cal standards, part(i)cularly w(i)th regard to the System of Nat(i)onal Accounts (SNA), work(i)ng t(i)me, employment-related (i)ncome, household (i)ncome and expend(i)ture and decent work (i)nd(i)cators,

Recogn(i)z(i)ng the need to rev(i)se and broaden the ex(i)st(i)ng standards for stat(i)st(i)cs on the (i)nformal economy (i)n order to: enable the better stat(i)st(i)cal measurement of var(i)ous aspects of (i)nformal product(i)ve act(i)v(i)t(i)es and of workers and econom(i)c un(i)ts (i)n the (i)nformal economy; extend the scope of the (i)nformal economy to cover all forms of work; descr(i)be adequately the character(i)st(i)cs and work(i)ng cond(i)t(i)ons of workers w(i)th (i)nformal jobs and the character(i)st(i)cs of (i)nformal econom(i)c un(i)ts; (i)dent(i)fy the ma(i)n dr(i)vers of (i)nformal(i)ty and mon(i)tor changes and trans(i)t(i)ons between the (i)nformal and formal economy; and prov(i)de gu(i)del(i)nes on a w(i)der set of measures than prev(i)ously def(i)ned at the (i)nternat(i)onal level, thereby enhanc(i)ng the relevance and usefulness of the standards for countr(i)es and terr(i)tor(i)es (here(i)nafter referred to as “countr(i)es”) at all stages of development,

Call(i)ng attent(i)on to the usefulness of these standards to enhance the (i)nternat(i)onal comparab(i)l(i)ty of stat(i)st(i)cs on the (i)nformal economy, to the(i)r contr(i)but(i)on to the measurement of decent work and the well-be(i)ng of households and soc(i)ety (i)n general, thereby support(i)ng and fac(i)l(i)tat(i)ng the trans(i)t(i)on from the (i)nformal to the formal economy, and to the ach(i)evement of gender equal(i)ty, susta(i)nable development and soc(i)al just(i)ce,

Acknowledg(i)ng that the relevance of stat(i)st(i)cs on the (i)nformal economy (i)n a g(i)ven country w(i)ll depend on the nature of (i)ts soc(i)ety, labour markets and regulat(i)ons as well as user needs, and that the(i)r (i)mplementat(i)on w(i)ll therefore, to a certa(i)n extent, be determ(i)ned by nat(i)onal c(i)rcumstances,

Adopts th(i)s 20th day of October of 2023 the follow(i)ng resolut(i)on (i)n subst(i)tut(i)on for the resolut(i)on of 1993 and for the Gu(i)del(i)nes of 2003 c(i)ted above.

Object(i)ves and scope

1. Th(i)s resolut(i)on a(i)ms to set standards for stat(i)st(i)cs on the (i)nformal economy to gu(i)de countr(i)es (i)n updat(i)ng, harmon(i)z(i)ng and further develop(i)ng the(i)r stat(i)st(i)cal programmes (i)n th(i)s f(i)eld. It def(i)nes the stat(i)st(i)cal concepts of (i)nformal product(i)ve act(i)v(i)t(i)es, the (i)nformal economy, the (i)nformal market economy and (i)nformal work for reference purposes and prov(i)des operat(i)onal concepts, def(i)n(i)t(i)ons and gu(i)del(i)nes for the stat(i)st(i)cal measurement of (i)ts components. Stat(i)st(i)cs on the (i)nformal economy are concerned w(i)th: (a) whether the product(i)ve act(i)v(i)t(i)es of workers or econom(i)c un(i)ts are (i)n law and (i)n pract(i)ce covered by formal arrangements (i)ntended to protect and regulate the act(i)ons and funct(i)ons of workers and econom(i)c un(i)ts, and the formal status of both the econom(i)c un(i)t and the work relat(i)onsh(i)p of the worker; and (b) the degree of exposure to econom(i)c and personal r(i)sk due to a lack of effect(i)ve coverage by formal arrangements.

2. In order to promote the coherence and (i)ntegrat(i)on of stat(i)st(i)cs from d(i)fferent sources on d(i)fferent aspects on the (i)nformal economy, the resolut(i)on prov(i)des:

(a) an overarch(i)ng conceptual framework for stat(i)st(i)cs on the (i)nformal economy;
(b) def(i)n(i)t(i)ons of d(i)st(i)nct subsets of econom(i)c un(i)ts depend(i)ng on the(i)r formal status and the (i)ntended dest(i)nat(i)on of the(i)r product(i)on;
(c) a set of def(i)n(i)t(i)ons of d(i)st(i)nct subsets of (i)nformal work, (i)nclud(i)ng (i)nformal employment, cons(i)stent w(i)th the forms of work framework establ(i)shed by the latest standards on work, employment and labour underut(i)l(i)zat(i)on;
(d) a set of (i)nd(i)cators to prov(i)de further (i)nformat(i)on on the d(i)vers(i)ty of character(i)st(i)cs, c(i)rcumstances and needs of workers and econom(i)c un(i)ts, the(i)r exposure to econom(i)c and personal r(i)sk, the degree of coverage by formal arrangements and the (i)dent(i)f(i)cat(i)on of prevalent forms of (i)nformal(i)ty and of part(i)cular groups of pol(i)cy (i)nterest; and
(e) operat(i)onal concepts, def(i)n(i)t(i)ons and gu(i)del(i)nes for the comp(i)lat(i)on of stat(i)st(i)cs on the (i)nformal economy and the (i)nd(i)cators.

3. These standards should serve to fac(i)l(i)tate the product(i)on of d(i)fferent subsets of stat(i)st(i)cs on the (i)nformal economy for d(i)fferent purposes as part of an (i)ntegrated nat(i)onal system that (i)s based on common concepts and def(i)n(i)t(i)ons.

4. Each country should a(i)m to develop (i)ts system of stat(i)st(i)cs on the (i)nformal economy (i)n order to prov(i)de an adequate (i)nformat(i)on base for a w(i)de range of descr(i)pt(i)ve and analyt(i)cal purposes, (i)nclud(i)ng for (a) descr(i)b(i)ng and enhanc(i)ng understand(i)ng of the (i)nformal economy and (b) support(i)ng the development of pol(i)c(i)es address(i)ng the (i)nformal economy, wh(i)le tak(i)ng account of spec(i)f(i)c nat(i)onal needs and c(i)rcumstances. Such a system should be des(i)gned to ach(i)eve a number of object(i)ves, (i)n part(i)cular to:

(a) descr(i)be the structure and evolut(i)on of the (i)nformal economy, allow(i)ng for the (i)dent(i)f(i)cat(i)on of groups of workers and econom(i)c un(i)ts h(i)ghly l(i)kely to be (i)ncluded and represented (i)n the (i)nformal economy;
(b) assess the s(i)tuat(i)on among populat(i)on groups (i)n the formal and (i)nformal economy, such as women and men, young people, m(i)grants and other groups of part(i)cular pol(i)cy concern, and analyse the relat(i)onsh(i)p between (i)nformal employment and (i)nformal work (i)n relat(i)on to forms of work other than employment and the(i)r econom(i)c and soc(i)al outcomes;
(c) mon(i)tor and (i)nform the des(i)gn, (i)mplementat(i)on and evaluat(i)on of econom(i)c and soc(i)al pol(i)c(i)es and programmes related to the trans(i)t(i)on from the (i)nformal economy to the formal economy, (i)nclud(i)ng w(i)th regard to the prevent(i)on of the (i)nformal(i)zat(i)on of formal jobs and formal econom(i)c un(i)ts, employment creat(i)on, product(i)v(i)ty growth and the extens(i)on of soc(i)al protect(i)on, (i)ncome secur(i)ty, poverty reduct(i)on, gender equal(i)ty and decent work;
(d) prov(i)de a comprehens(i)ve descr(i)pt(i)on of the part(i)c(i)pat(i)on (i)n and compos(i)t(i)on of (i)nformal employment and of the degree of coverage by formal arrangements among workers (i)n (i)nformal and formal employment, as well as among (i)nformal and formal econom(i)c un(i)ts, (i)nclud(i)ng the(i)r exposure to econom(i)c and personal r(i)sks assoc(i)ated w(i)th the work;
(e) prov(i)de (i)nformat(i)on on the s(i)ze and compos(i)t(i)on of the (i)nformal sector and on product(i)on (i)nputs, (i)nclud(i)ng labour (i)nputs, and outputs to create exhaust(i)ve est(i)mates for the purposes of nat(i)onal accounts, (i)nclud(i)ng to support the construct(i)on of (i)nput-output tables and est(i)mates of value added, the contr(i)but(i)on of (i)nformal sector act(i)v(i)t(i)es to gross domest(i)c product (GDP) and the product(i)v(i)ty of the (i)nformal sector, and for the comp(i)lat(i)on of themat(i)c and extended accounts;
(f) (i)dent(i)fy decent work def(i)c(i)ts and evaluate the econom(i)c and soc(i)al (i)mpacts ar(i)s(i)ng from demograph(i)c sh(i)fts, cl(i)mate change, as well as from macroeconom(i)c changes such as fluctuat(i)ons (i)n econom(i)c cycles, d(i)g(i)tal(i)zat(i)on or long-term changes (i)n the s(i)ze and compos(i)t(i)on of the (i)nformal economy; and
(g) prov(i)de the ev(i)dence needed to evaluate the (i)mpact and outreach of government pol(i)c(i)es a(i)med at protect(i)ng and regulat(i)ng the act(i)ons and funct(i)ons of workers (i)n relat(i)on to pa(i)d and unpa(i)d work.

5. To support these object(i)ves, the standards are complemented by an assoc(i)ated (i)nd(i)cator framework for countr(i)es to use, depend(i)ng on nat(i)onal needs and object(i)ves. Th(i)s extens(i)ve and dynam(i)c set of (i)nd(i)cators prov(i)des add(i)t(i)onal (i)nformat(i)on on the extent and nature of the (i)nformal(i)ty of jobs and econom(i)c un(i)ts and the(i)r contr(i)but(i)on to the economy; trans(i)t(i)ons between formal(i)ty and (i)nformal(i)ty; the d(i)fferent levels and types of vulnerab(i)l(i)ty or protect(i)ons assoc(i)ated w(i)th the work env(i)ronment and personal, household or other contextual factors; and the dr(i)vers of formal(i)zat(i)on or (i)nformal(i)zat(i)on, (i)nclud(i)ng (i)n w(i)der labour, gender and soc(i)al and econom(i)c contexts.

6. In develop(i)ng stat(i)st(i)cs on the (i)nformal economy, countr(i)es should endeavour to apply these standards (i)n order to fac(i)l(i)tate (i)nternat(i)onal comparab(i)l(i)ty and to perm(i)t the evaluat(i)on of trends and structural changes for the purpose of labour market and soc(i)al and econom(i)c analys(i)s.

Reference concepts

7. Stat(i)st(i)cs on (i)nformal(i)ty are concerned w(i)th the (i)nformal nature of (a) the product(i)ve act(i)v(i)t(i)es of econom(i)c un(i)ts and (b) the product(i)ve act(i)v(i)t(i)es of persons, where:

(a) the concept of “product(i)ve act(i)v(i)t(i)es of econom(i)c un(i)ts” (i)s al(i)gned w(i)th the def(i)n(i)t(i)on (i)n the SNA and (i)ncludes processes or act(i)v(i)t(i)es carr(i)ed out under the control and respons(i)b(i)l(i)ty of an econom(i)c un(i)t and that use (i)nputs of labour, cap(i)tal, goods and serv(i)ces to produce outputs of goods or serv(i)ces;
(b) the concept of “econom(i)c un(i)t” (i)s al(i)gned w(i)th that def(i)ned (i)n the SNA and d(i)st(i)ngu(i)shes between:
- ( (i) ) market un(i)ts (corporat(i)ons, quas(i)-corporat(i)ons and household market enterpr(i)ses);
- ((i)(i)) non-market un(i)ts (government and non-prof(i)t (i)nst(i)tut(i)ons serv(i)ng households); and
- ((i)(i)(i)) households that produce goods or serv(i)ces for own f(i)nal use (households);
(c) the concept of “product(i)ve act(i)v(i)t(i)es of persons” (i)s al(i)gned w(i)th the def(i)n(i)t(i)on of “work” (i)n the current (i)nternat(i)onal standards concern(i)ng stat(i)st(i)cs of work, employment and labour underut(i)l(i)zat(i)on. It (i)ncludes act(i)v(i)t(i)es w(i)th(i)n the SNA product(i)on boundary as well as act(i)v(i)t(i)es outs(i)de the SNA product(i)on boundary but (i)ns(i)de the SNA general product(i)on boundary; and
(d) work can be subd(i)v(i)ded (i)nto f(i)ve d(i)st(i)nct forms:
- ( (i) ) own-use product(i)on work;
- ((i)(i)) employment work;
- ((i)(i)(i)) unpa(i)d tra(i)nee work;
- ((i)v) volunteer work;
- (V) other work act(i)v(i)t(i)es.

8. The un(i)ts that are relevant for the product(i)on of stat(i)st(i)cs on (i)nformal(i)ty are persons, jobs or work act(i)v(i)t(i)es, and econom(i)c un(i)ts.

9. All product(i)ve act(i)v(i)t(i)es def(i)ned as work can be l(i)nked to a spec(i)f(i)c job or work act(i)v(i)ty and all jobs and work act(i)v(i)t(i)es can be categor(i)zed by status (i)n employment and status at work as def(i)ned (i)n the most recent standards concern(i)ng stat(i)st(i)cs of work, employment or work relat(i)onsh(i)ps.

The boundar(i)es of stat(i)st(i)cs on (i)nformal(i)ty

Informal product(i)ve act(i)v(i)t(i)es

10. For stat(i)st(i)cal purposes, the concept of “(i)nformal product(i)ve act(i)v(i)t(i)es” (i)s def(i)ned as all product(i)ve act(i)v(i)t(i)es carr(i)ed out by persons or econom(i)c un(i)ts that are – (i)n law or (i)n pract(i)ce – not covered by formal arrangements.

11. The concept (i)ncludes product(i)ve act(i)v(i)t(i)es w(i)th(i)n the SNA general product(i)on boundary that are – (i)n law or (i)n pract(i)ce – not covered by formal arrangements as establ(i)shed by regulat(i)ons and laws, such as:

(a) regulat(i)ons that st(i)pulate the r(i)ghts and respons(i)b(i)l(i)t(i)es and obl(i)gat(i)ons of the econom(i)c un(i)ts and the workers;
(b) commerc(i)al laws that regulate the product(i)ve act(i)v(i)t(i)es carr(i)ed out by econom(i)c un(i)ts and the(i)r engagement (i)n commerc(i)al contracts, (i)nclud(i)ng to safeguard the(i)r (i)ntellectual and phys(i)cal property;
(c) procedures to report econom(i)c act(i)v(i)t(i)es such as f(i)scal obl(i)gat(i)ons (i)n order, for example, to pay taxes or to cover employees by soc(i)al secur(i)ty;
(d) labour laws and regulat(i)ons such as those relat(i)ng to freedom of assoc(i)at(i)on, r(i)ghts to collect(i)ve barga(i)n(i)ng, pa(i)d annual leave, pa(i)d s(i)ck leave, the m(i)n(i)mum wage, hours of work, soc(i)al secur(i)ty coverage and soc(i)al d(i)alogue; and
(e) procedures that regulate access to the (i)nst(i)tut(i)onal (i)nfrastructure such as , markets, governmental support mechan(i)sms and f(i)nanc(i)al (i)nst(i)tut(i)ons (i)nclud(i)ng banks.

12. Coverage by formal arrangements (i)n law and (i)n pract(i)ce does not merely (i)mply hav(i)ng legal coverage by the formal arrangements but means that the arrangements should be effect(i)vely accessed (i)n pract(i)ce by the worker and the econom(i)c un(i)t by fulf(i)ll(i)ng procedures that enta(i)l dut(i)es and obl(i)gat(i)ons for all part(i)es (i)nvolved.

The (i)nformal economy

13. The “(i)nformal economy” compr(i)ses all (i)nformal product(i)ve act(i)v(i)t(i)es of persons or econom(i)c un(i)ts, whether or not they are carr(i)ed out for pay or prof(i)t.

14. Illegal and (i)ll(i)c(i)t act(i)v(i)t(i)es where the goods and serv(i)ces are forb(i)dden by law are excluded from the (i)nformal economy and from other stat(i)st(i)cal concepts def(i)ned (i)n these standards. Act(i)v(i)t(i)es where the goods and serv(i)ces produced are usually legal but become (i)llegal when carr(i)ed out by unauthor(i)zed producers are to be (i)ncluded together w(i)th other (i)nformal product(i)ve act(i)v(i)t(i)es (i)n the (i)nformal economy.

15. “Informal product(i)ve act(i)v(i)t(i)es of persons” (i)nclude (i)nformal tasks and dut(i)es carr(i)ed out by persons (i)n:

(a) (i)nformal employment, as def(i)ned (i)n paragraph 56;
(b) formal employment, carry(i)ng out partly (i)nformal act(i)v(i)t(i)es, tasks and dut(i)es, as def(i)ned (i)n paragraph 92; and
(c) unpa(i)d tra(i)nee work, volunteer work, own-use product(i)on work and other work act(i)v(i)t(i)es, as def(i)ned (i)n paragraph 97.

16. “Informal product(i)ve act(i)v(i)t(i)es of econom(i)c un(i)ts” (i)nclude (i)nformal product(i)on carr(i)ed out by:

(a) econom(i)c un(i)ts (i)n the (i)nformal sector, as def(i)ned (i)n paragraph 26(b); and
(b) households produc(i)ng for own f(i)nal use, (i)nclud(i)ng d(i)rect volunteer work, and product(i)on by non-formal non-prof(i)t organ(i)zat(i)ons, as def(i)ned (i)n paragraph 26(c).

17. The concept of the (i)nformal economy enables the comprehens(i)ve measurement of the (i)nformal product(i)ve act(i)v(i)t(i)es carr(i)ed out by econom(i)c un(i)ts and of (i)nformal product(i)ve act(i)v(i)t(i)es by persons (i)n relat(i)on to employment and undertaken through forms of work other than employment.

The (i)nformal market economy

18. For stat(i)st(i)cal purposes, the concept of the “(i)nformal market economy” (i)s def(i)ned as all product(i)on for pay or prof(i)t (i)n the (i)nformal sector and all product(i)ve act(i)v(i)t(i)es of workers (i)n employment that are – (i)n law or (i)n pract(i)ce – not covered by formal arrangements.

19. “Employed persons (i)n the (i)nformal market economy” (i)nclude:

(a) persons (i)n (i)nformal employment, as def(i)ned (i)n paragraph 56; and
(b) persons (i)n formal employment carry(i)ng out partly (i)nformal act(i)v(i)t(i)es, tasks and dut(i)es, as def(i)ned (i)n paragraph 92.

20. “Informal product(i)ve act(i)v(i)t(i)es of econom(i)c un(i)ts (i)n the (i)nformal market economy” (i)nclude product(i)on undertaken by econom(i)c un(i)ts (i)n the (i)nformal sector, as def(i)ned (i)n paragraph 26(b).

21. The narrower concept of the (i)nformal market economy (i)ncludes the core concepts of (i)nformal employment and the (i)nformal sector, and (i)s essent(i)al for des(i)gn(i)ng and evaluat(i)ng (i)nclus(i)ve econom(i)c and soc(i)al pol(i)c(i)es that a(i)m to (i)mprove work(i)ng cond(i)t(i)ons, ach(i)eve gender equal(i)ty, reduce poverty, promote decent work, enhance product(i)v(i)ty, sk(i)lls development and l(i)felong learn(i)ng and support the formal(i)zat(i)on of the (i)nformal market economy.

Informal sector, formal sector and household own-use product(i)on and commun(i)ty sector

22. Two aspects of an econom(i)c un(i)t need to be establ(i)shed to (i)dent(i)fy the (i)nformal sector, the formal sector and the household own-use product(i)on and commun(i)ty sector:

(a) the (i)ntended dest(i)nat(i)on of the product(i)on; and
(b) the formal status of the econom(i)c un(i)t.

23. The (i)ntended dest(i)nat(i)on reflects whether the product(i)on (i)s ma(i)nly (i)ntended for the market w(i)th the purpose of generat(i)ng a prof(i)t and (i)ncome.

24. Types of product(i)on that are not (i)ntended for the market w(i)th the purpose of generat(i)ng a prof(i)t and (i)ncome (i)nclude:

(a) product(i)on that (i)s ma(i)nly for own f(i)nal use; and
(b) product(i)on ma(i)nly (i)ntended for the market but w(i)thout an (i)ntent(i)on to generate (i)ncome; and
(c) non-market product(i)on that (i)s ma(i)nly for f(i)nal use by other households.

25. The formal status of the econom(i)c un(i)t reflects whether the un(i)t (i)s formally recogn(i)zed by government author(i)t(i)es as a d(i)st(i)nct producer of goods or serv(i)ces and (i)s thus covered by formal arrangements.

26. Depend(i)ng on the formal status of the econom(i)c un(i)t and the (i)ntended dest(i)nat(i)on of the product(i)on, econom(i)c un(i)ts can be allocated mutually exclus(i)vely to one of the follow(i)ng sectors:

(a) The formal sector, compr(i)s(i)ng econom(i)c un(i)ts that are formally recogn(i)zed as d(i)st(i)nct producers of goods and serv(i)ces for the consumpt(i)on of others and whose product(i)on (i)s ma(i)nly (i)ntended for the market w(i)th the purpose of generat(i)ng an (i)ncome or prof(i)t, for a non-prof(i)t purpose, or non-market product(i)on for use by other econom(i)c un(i)ts (corporat(i)ons, quas(i)-corporat(i)ons, government un(i)ts, formal non-prof(i)t (i)nst(i)tut(i)ons serv(i)ng households and formal household un(i)ncorporated market enterpr(i)ses).
(b) The (i)nformal sector, compr(i)s(i)ng econom(i)c un(i)ts whose product(i)on (i)s ma(i)nly (i)ntended for the market w(i)th the purpose of generat(i)ng (i)ncome and prof(i)t, but that are not formally recogn(i)zed as producers of goods and serv(i)ces d(i)st(i)nct from the own-use product(i)on of the owner-operators’ household ((i)nformal household un(i)ncorporated market enterpr(i)ses).
(c) Household own-use product(i)on and commun(i)ty sector, compr(i)s(i)ng econom(i)c un(i)ts that are not formally recogn(i)zed as producers of goods and serv(i)ces for the consumpt(i)on of others, whose product(i)on (i)s e(i)ther ma(i)nly for the household’s own f(i)nal use, or for the use of other households, w(i)thout the purpose of generat(i)ng (i)ncome and prof(i)t for the produc(i)ng household or households or the members of the non-formal non-prof(i)t organ(i)zat(i)on (households and non-formal non-prof(i)t organ(i)zat(i)ons).

27. Econom(i)c un(i)ts (i)n the formal sector, the (i)nformal sector and the household own-use product(i)on and commun(i)ty sector may use d(i)fferent forms of (i)nformal pa(i)d and unpa(i)d work as (i)nput to the(i)r formal or (i)nformal product(i)on (table 1).

Table 1. Informal product(i)ve act(i)v(i)t(i)es by econom(i)c un(i)ts (i)n the (i)nformal economy

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Operat(i)onal def(i)n(i)t(i)ons of the three sectors

Formal sector

28. The formal sector compr(i)ses all econom(i)c un(i)ts that are formally recogn(i)zed as producers of goods and serv(i)ces and are thus covered by formal arrangements. These formal econom(i)c un(i)ts are character(i)zed by:

(a) hav(i)ng a formal status as d(i)st(i)nct producers of goods or serv(i)ces by:
- ( (i) ) be(i)ng owned or controlled by the government; or
- ((i)(i)) be(i)ng recogn(i)zed as separate legal ent(i)t(i)es from the(i)r owners; or
- ((i)(i)(i)) keep(i)ng a complete set of accounts for tax purposes; or
- ((i)v) be(i)ng reg(i)stered (i)n a governmentally establ(i)shed system of reg(i)strat(i)on; or
- (v) produc(i)ng for the market and employ(i)ng one or more persons to work as an employee w(i)th a formal job;
(b) the (i)ntended dest(i)nat(i)on of the product(i)on be(i)ng:
- (v(i)) ma(i)nly for the market w(i)th the purpose of generat(i)ng an (i)ncome and prof(i)t or w(i)th a non-prof(i)t purpose, or non-market product(i)on for use by other econom(i)c un(i)ts.

29. For the operat(i)onal(i)zat(i)on of the cr(i)ter(i)a l(i)sted (i)n paragraph 28(a), the requ(i)rements set out (i)n paragraphs 30–36 below should be taken (i)nto account.

30. Econom(i)c un(i)ts that are owned or controlled by the government (paragraph 28(a)): Econom(i)c un(i)ts that are owned or controlled by the general government (i)nclude un(i)ts that are part of the central, state or local government and econom(i)c un(i)ts owned and operated by the State w(i)th the purpose of produc(i)ng goods and serv(i)ces for the populat(i)on, such as state healthcare, publ(i)c schools, defence, publ(i)c order and safety, or produc(i)ng market goods and serv(i)ces (publ(i)c corporat(i)ons). Th(i)s excludes s(i)tuat(i)ons where the general government m(i)ght control access to the market or s(i)m(i)lar but does not own and control the econom(i)c un(i)ts carry(i)ng out the product(i)on.

31. Econom(i)c un(i)ts that are recogn(i)zed as separate legal ent(i)t(i)es from the(i)r owners (paragraph 28(a)((i)(i))): Econom(i)c un(i)ts that are (i)ncorporated (such as a l(i)m(i)ted l(i)ab(i)l(i)ty corporat(i)on or l(i)m(i)ted partnersh(i)p) and therefore recogn(i)zed as legal ent(i)t(i)es separate from the(i)r owner are formally recogn(i)zed producers of goods and serv(i)ces. The (i)ncorporated status of the econom(i)c un(i)t (i)mpl(i)es a separat(i)on of assets and (i)ncome between the owner and the enterpr(i)se and a l(i)m(i)ted legal l(i)ab(i)l(i)ty for the owner (i)n relat(i)on to, for example, any debts or other obl(i)gat(i)ons held by the enterpr(i)se.

32. Econom(i)c un(i)ts that keep a complete set of accounts for tax purposes (paragraph 28(a)((i)(i)(i))): Enterpr(i)ses that keep a complete set of accounts ((i)nclud(i)ng balance sheets, assets, l(i)ab(i)l(i)t(i)es, flows of (i)ncome and cap(i)tal between the enterpr(i)se and the owner) for the purpose of al(i)gn(i)ng to tax regulat(i)ons or other relevant regulat(i)ons are def(i)ned as formally recogn(i)zed enterpr(i)ses and thus (i)ncluded (i)n the formal sector.

33. Econom(i)c un(i)ts that are reg(i)stered (i)n a governmentally establ(i)shed system of reg(i)strat(i)on used for grant(i)ng access to benef(i)ts and that carr(i)es obl(i)gat(i)ons (paragraph 28 (a)((i)v)): Reg(i)strat(i)on (i)mpl(i)es formal recogn(i)t(i)on of the econom(i)c un(i)t as an ent(i)ty produc(i)ng for the market d(i)st(i)nct from the own-use product(i)on of the owner-operators’ household, (i)rrespect(i)ve of whether th(i)s separat(i)on (i)s a de facto legal separat(i)on or a f(i)nanc(i)al separat(i)on. Reg(i)strat(i)on should refer to a reg(i)ster or reg(i)sters (i)n the g(i)ven country used for grant(i)ng access to benef(i)ts such as tax deduct(i)ons, obta(i)n(i)ng a separate legal (i)dent(i)ty for enterpr(i)ses, grant(i)ng access to statutory soc(i)al (i)nsurance ((i)f (i)t (i)mpl(i)es a formal status of the econom(i)c un(i)t) and carry(i)ng obl(i)gat(i)ons such as pay(i)ng bus(i)ness tax and keep(i)ng accounts. The reg(i)ster or reg(i)sters would typ(i)cally be at a nat(i)onal level, but could also be at a local level (i)f the reg(i)ster (i)s governmentally establ(i)shed and controlled, but locally adm(i)n(i)strated.

34. Depend(i)ng on the nat(i)onal context, the ex(i)stence of s(i)mpl(i)f(i)ed accounts for tax purposes can be an (i)nd(i)cat(i)on of reg(i)strat(i)on, (i)f keep(i)ng these accounts (i)mpl(i)es a reg(i)strat(i)on of the econom(i)c un(i)t and thereby a formal recogn(i)t(i)on of the econom(i)c un(i)t. In countr(i)es where reg(i)ster(i)ng an enterpr(i)se m(i)ght not necessar(i)ly carry any obl(i)gat(i)ons or benef(i)ts, there m(i)ght be a need to comb(i)ne d(i)fferent reg(i)sters such as, for example, the bus(i)ness reg(i)ster and the tax reg(i)ster, to ensure that a certa(i)n degree of formal arrangements comes w(i)th the formal status of the econom(i)c un(i)t.

35. In case countr(i)es have spec(i)al regulat(i)ons and reg(i)sters target(i)ng a spec(i)f(i)c type of product(i)on, such as agr(i)cultural act(i)v(i)t(i)es, reg(i)strat(i)on may also refer to these spec(i)al(i)zed nat(i)onal reg(i)sters. However, reg(i)sters used for purposes other than product(i)on or the operat(i)on of a bus(i)ness, such as those related to land tenure, are not assumed to (i)mply the ex(i)stence of a formal enterpr(i)se.

36. Econom(i)c un(i)ts that employ one or more persons to work as an employee w(i)th a formal job (paragraph 28 (a)(v)): Econom(i)c un(i)ts that employ one or more persons under cond(i)t(i)ons that meet the requ(i)rements of a formal job held by an employee, as def(i)ned (i)n paragraphs 83–86, are cons(i)dered to be formally recogn(i)zed econom(i)c un(i)ts and thus form part of the formal sector, unless the econom(i)c un(i)t (i)s a household (i)n the household own-use product(i)on and commun(i)ty sector. Econom(i)c un(i)ts that employ one or more persons to work under cond(i)t(i)ons that meet the requ(i)rements of an (i)nformal job, as def(i)ned (i)n paragraphs 76–80, may be def(i)ned as formal econom(i)c un(i)ts, (i)nformal household un(i)ncorporated market enterpr(i)ses or households, depend(i)ng on the formal status of the econom(i)c un(i)t and the (i)ntended dest(i)nat(i)on of the product(i)on.

37. Formal econom(i)c un(i)ts can carry out econom(i)c act(i)v(i)t(i)es (i)n any type of (i)ndustry. The product(i)on by formal econom(i)c un(i)ts (i)s, by default, cons(i)dered formal product(i)on, but could (i)nclude (i)nformal product(i)ve act(i)v(i)t(i)es carr(i)ed out by persons when (i)nformal work (i)s used as (i)nput to that product(i)on. Th(i)s (i)ncludes formal econom(i)c un(i)ts engag(i)ng (i)nformal employees, formal employees carry(i)ng out partly (i)nformal product(i)ve act(i)v(i)t(i)es and persons carry(i)ng out (i)nformal work other than employment.

Workers (i)n the formal sector

38. Persons carry(i)ng out work (i)n the formal sector (i)nclude employed persons (i)n the formal sector, unpa(i)d tra(i)nees and volunteers carry(i)ng out work for a formal econom(i)c un(i)t.

39. Persons employed (i)n the formal sector (i)nclude (i)ndependent workers who own and operate a formal enterpr(i)se, dependent contractors who own and operate a formal enterpr(i)se or are reg(i)stered for tax, employees and contr(i)but(i)ng fam(i)ly workers w(i)th (i)nformal or formal jobs carry(i)ng out work for a formal econom(i)c un(i)t.

Informal sector

40. For stat(i)st(i)cal purposes, the (i)nformal sector (i)s def(i)ned as compr(i)s(i)ng econom(i)c un(i)ts that are producers of goods and serv(i)ces ma(i)nly (i)ntended for the market to generate (i)ncome and prof(i)t and that are not formally recogn(i)zed by government author(i)t(i)es as d(i)st(i)nct market producers and thus not covered by formal arrangements. These (i)nformal household un(i)ncorporated market enterpr(i)ses are character(i)zed by:

(a) not hav(i)ng a formal status as a market producer, by:
- ( (i) ) not be(i)ng owned or controlled by the government; and
- ((i)(i)) not be(i)ng recogn(i)zed as separate legal ent(i)t(i)es from the(i)r owners; and
- ((i)(i)(i)) not keep(i)ng a complete set of accounts for tax purposes; and
- ((i)v) not be(i)ng reg(i)stered (i)n governmentally establ(i)shed system of reg(i)strat(i)on; and
- (v) not employ(i)ng one or more persons to work as an employee w(i)th a formal job;
(b) the (i)ntended dest(i)nat(i)on of the product(i)on be(i)ng:
- (v(i)) ma(i)nly for the market w(i)th the purpose of generat(i)ng an (i)ncome and prof(i)t for the owner or owners of the enterpr(i)se.

41. For the operat(i)onal(i)zat(i)on of the cr(i)ter(i)a l(i)sted (i)n paragraph 40(a), the requ(i)rements set out (i)n paragraphs 30–36 should be taken (i)nto account.

42. A character(i)st(i)c of (i)nformal household un(i)ncorporated market enterpr(i)ses (i)s that the(i)r product(i)on (i)s ma(i)nly (i)ntended for the market w(i)th the purpose of generat(i)ng an (i)ncome or prof(i)t for the owner or owners of the enterpr(i)se. Th(i)s ensures that the ma(i)n purpose of an (i)nformal household market enterpr(i)se (i)s to generate (i)ncome and employment for the persons concerned. Econom(i)c un(i)ts w(i)th product(i)on ma(i)nly (i)ntended for own f(i)nal use, or whose market product(i)on (i)s not (i)ntended to be a source of (i)ncome and prof(i)t, are therefore excluded from the (i)nformal sector.

43. Informal household un(i)ncorporated market enterpr(i)ses can engage (i)n product(i)on (i)n all (i)ndustr(i)es, agr(i)culture as well as non-agr(i)culture, (i)nsofar as the product(i)on (i)s ma(i)nly (i)ntended for the market to generate an (i)ncome and prof(i)t. All product(i)ve act(i)v(i)t(i)es of (i)nformal household un(i)ncorporated market enterpr(i)ses are, by def(i)n(i)t(i)on, (i)nformal product(i)ve act(i)v(i)t(i)es.

44. Informal household un(i)ncorporated market enterpr(i)ses, wh(i)ch are thus (i)n the (i)nformal sector, can be v(i)ewed as a subsector of the household sector as def(i)ned by the SNA. Informal household un(i)ncorporated market enterpr(i)ses share character(i)st(i)cs w(i)th households as def(i)ned by the SNA and there (i)s no clear separat(i)on (i)n pract(i)ce between the assets and l(i)ab(i)l(i)t(i)es of the (i)nformal household un(i)ncorporated market enterpr(i)se and the owners.

Mult(i)ple (i)nformal household un(i)ncorporated market enterpr(i)ses

45. A s(i)ngle household can (i)nclude mult(i)ple (i)nformal household un(i)ncorporated market enterpr(i)ses and may also engage (i)n d(i)fferent types of product(i)on (i)n parallel, (i)nclud(i)ng product(i)on for own f(i)nal use and product(i)on (i)n relat(i)on to one or more (i)nformal household un(i)ncorporated market enterpr(i)ses.

46. Informal household un(i)ncorporated market enterpr(i)ses can be owned and operated by one person only or (i)n partnersh(i)p w(i)th members of the same household or other households. D(i)fferent unrelated market act(i)v(i)t(i)es carr(i)ed out by d(i)fferent household members are def(i)ned as separate (i)nformal household un(i)ncorporated market enterpr(i)ses. D(i)fferent unrelated market act(i)v(i)t(i)es that (i)nvolve d(i)fferent k(i)nds of product(i)ve act(i)v(i)t(i)es, as def(i)ned by the Internat(i)onal Standard Industr(i)al Class(i)f(i)cat(i)on of All Econom(i)c Act(i)v(i)t(i)es, and d(i)fferent sk(i)ll requ(i)rements and occupat(i)ons, as def(i)ned by the Internat(i)onal Standard Class(i)f(i)cat(i)on of Occupat(i)ons, carr(i)ed out by the same person can, (i)f feas(i)ble and relevant, be def(i)ned as separate (i)nformal household un(i)ncorporated market enterpr(i)ses.

Workers (i)n the (i)nformal sector

47. Persons carry(i)ng out work (i)n the (i)nformal sector (i)nclude employed persons (i)n the (i)nformal sector, unpa(i)d tra(i)nees and volunteers carry(i)ng out work for an (i)nformal household un(i)ncorporated market enterpr(i)se.

48. Persons employed (i)n the (i)nformal sector (i)nclude (i)ndependent workers who own and operate an (i)nformal household un(i)ncorporated market enterpr(i)se, dependent contractors who do not own and operate a formal econom(i)c un(i)t and are not reg(i)stered for tax, employees and contr(i)but(i)ng fam(i)ly workers who are employed (i)n (i)nformal household un(i)ncorporated market enterpr(i)ses.

Household own-use product(i)on and commun(i)ty sector

49. The household own-use product(i)on and commun(i)ty sector compr(i)ses all households produc(i)ng goods or serv(i)ces that are ma(i)nly (i)ntended for own f(i)nal use or for the use of others w(i)thout the purpose of generat(i)ng an (i)ncome or prof(i)t by undertak(i)ng d(i)rect volunteer(i)ng and all non-formal non-prof(i)t organ(i)zat(i)ons serv(i)ng households. These un(i)ts are character(i)zed by:

(a) not be(i)ng formally recogn(i)zed as d(i)st(i)nct producers of goods or serv(i)ces; and
(b) the product(i)on that takes place be(i)ng ma(i)nly (i)ntended for:
- ( (i) ) the own f(i)nal use of the household; or
- ((i)(i)) the use of other households w(i)thout the purpose of generat(i)ng an (i)ncome or prof(i)t for the members of the household or non-formal non-prof(i)t organ(i)zat(i)on.

Workers (i)n the household own-use product(i)on and commun(i)ty sector

50. Persons carry(i)ng out work (i)n the household own-use product(i)on and commun(i)ty sector (i)nclude:

(a) persons employed (i)n the household own-use product(i)on and commun(i)ty sector, (i)nclud(i)ng domest(i)c employees;
(b) household members carry(i)ng out own-use product(i)on of goods and serv(i)ces; and
(c) volunteers carry(i)ng out d(i)rect volunteer work or organ(i)zat(i)on-based volunteer work for a non-prof(i)t organ(i)zat(i)on that (i)s not formally recogn(i)zed.

51. Persons employed (i)n the household own-use product(i)on and commun(i)ty sector (i)nclude employees w(i)th (i)nformal or formal jobs engaged by the household to produce goods or prov(i)de serv(i)ces to be consumed by the household and employees w(i)th (i)nformal jobs engaged by nonformal non-prof(i)t organ(i)zat(i)ons.

Subsectors of the household own-use product(i)on and commun(i)ty sector

52. The household own-use product(i)on and commun(i)ty sector may, (i)f feas(i)ble and relevant (i)n the nat(i)onal context and depend(i)ng on stat(i)st(i)cal object(i)ves, be further categor(i)zed (i)nto the pa(i)rs of d(i)chotomous subsectors set out below.

(a) Households produc(i)ng for own f(i)nal use versus non-prof(i)t organ(i)zat(i)ons that are not formally recogn(i)zed by the legal adm(i)n(i)strat(i)ve framework of the country.
- ( (i) ) Th(i)s d(i)chotomy (i)s relevant (i)n relat(i)on to stat(i)st(i)cs on volunteer work.
- ((i)(i)) The (i)dent(i)f(i)cat(i)on of the two subsectors requ(i)res add(i)t(i)onal (i)nformat(i)on on the degree of organ(i)zat(i)on of the volunteer work carr(i)ed out for use by other households.
(b) Household own-use product(i)on and commun(i)ty sector w(i)th(i)n the SNA product(i)on boundary versus household own-use product(i)on and commun(i)ty sector outs(i)de the SNA product(i)on boundary (but w(i)th(i)n the SNA general product(i)on boundary).
- ( (i) ) Th(i)s d(i)chotomy enables a comprehens(i)ve measurement of all (i)nformal product(i)ve act(i)v(i)t(i)es (i)n the (i)nformal economy that are w(i)th(i)n the SNA product(i)on boundary.
- ((i)(i)) The goods and serv(i)ces to (i)nclude (i)n the two d(i)fferent subsectors should follow the latest recommendat(i)ons def(i)n(i)ng the SNA product(i)on boundary.
(c) Households and non-formal non-prof(i)t organ(i)zat(i)ons w(i)th employees versus households and non-formal non-prof(i)t organ(i)zat(i)ons w(i)thout employees.
- ( (i) ) Th(i)s d(i)chotomy enables the (i)dent(i)f(i)cat(i)on of households and non-formal non-prof(i)t organ(i)zat(i)ons as employers, for example households engag(i)ng domest(i)c employees.
- ((i)(i)) It requ(i)res (i)nformat(i)on on whether households produc(i)ng for own f(i)nal use and nonformal non-prof(i)t organ(i)zat(i)ons engage employees and thereby const(i)tute an employer.
- ((i)(i)(i)) If non-formal non-prof(i)t organ(i)zat(i)ons are not separately (i)dent(i)f(i)ed these are to be treated as households thereby creat(i)ng the d(i)chotomy of households produc(i)ng for own f(i)nal use w(i)th employees versus households w(i)thout employees.

Informal work

53. Informal work cons(i)sts of product(i)ve act(i)v(i)t(i)es performed by persons that are – (i)n law or (i)n pract(i)ce – not covered by formal arrangements. It compr(i)ses:

(a) product(i)ve act(i)v(i)t(i)es carr(i)ed out by persons (i)n employment that are, (i)n law or (i)n pract(i)ce, not covered by formal arrangements such as regulat(i)ons and laws that st(i)pulate the r(i)ghts and respons(i)b(i)l(i)t(i)es, obl(i)gat(i)ons and protect(i)on of the econom(i)c un(i)ts and the workers; and
(b) product(i)ve act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to:
- ( (i) ) own-use product(i)on work;
- ((i)(i)) volunteer work;
- ((i)(i)(i)) unpa(i)d tra(i)nee work; and
- (v) ther work act(i)v(i)t(i)es,

as def(i)ned by the latest standards on work and employment and where the act(i)v(i)t(i)es are not covered by formal arrangements such as regulat(i)ons and prov(i)s(i)ons that promote or fac(i)l(i)tate the work and protect and regulate the act(i)ons and funct(i)ons of the worker.

54. Persons carry(i)ng out (i)nformal product(i)ve act(i)v(i)t(i)es (i)n the (i)nformal economy may carry out th(i)s work for econom(i)c un(i)ts categor(i)zed (i)n the formal sector, (i)nformal sector or household own-use product(i)on and commun(i)ty sector (table 2).

Table 2. Informal product(i)ve act(i)v(i)t(i)es by persons (i)n the (i)nformal economy

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Informal employment

55. Stat(i)st(i)cs on (i)nformal employment a(i)m at:

(a) establ(i)sh(i)ng whether the product(i)ve act(i)v(i)t(i)es def(i)ned as employment are, (i)n law and (i)n pract(i)ce, covered by formal arrangements and the formal status of the econom(i)c un(i)t for wh(i)ch th(i)s work (i)s carr(i)ed out; and
(b) descr(i)b(i)ng the structure and extent of (i)nformal employment, (i)dent(i)fy(i)ng groups of persons (i)n employment most represented and at r(i)sk of (i)nformal(i)ty, and prov(i)d(i)ng (i)nformat(i)on on exposure to econom(i)c and personal r(i)sks, decent work def(i)c(i)ts and work(i)ng cond(i)t(i)ons.

56. Informal employment (i)s def(i)ned as any act(i)v(i)ty of persons to produce goods or prov(i)de serv(i)ces for pay or prof(i)t that (i)s -(i)n law or (i)n pract(i)ce- not covered by formal arrangements such as commerc(i)al laws, procedures to report econom(i)c act(i)v(i)t(i)es, (i)ncome taxat(i)on, labour leg(i)slat(i)on and soc(i)al secur(i)ty laws and regulat(i)ons prov(i)d(i)ng protect(i)on aga(i)nst econom(i)c and personal r(i)sks assoc(i)ated w(i)th carry(i)ng out the act(i)v(i)t(i)es. Informal employment compr(i)ses act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to (i)nformal jobs held by:

(a) (i)ndependent workers who operate and own or co-own an (i)nformal household un(i)ncorporated market enterpr(i)se;
(b) dependent contractors who do not have a formal status (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework or whose act(i)v(i)t(i)es are not effect(i)vely covered by formal arrangements;
(c) employees, (i)f the(i)r employment relat(i)onsh(i)p (i)s not, (i)n pract(i)ce, formally recogn(i)zed by the employer (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country or not assoc(i)ated w(i)th effect(i)ve access to formal arrangements; and
(d) contr(i)but(i)ng fam(i)ly workers whose work relat(i)onsh(i)ps are not formally recogn(i)zed (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country or not assoc(i)ated w(i)th effect(i)ve access to formal arrangements.

57. All tasks and dut(i)es carr(i)ed out (i)n relat(i)on to an (i)nformal job are cons(i)dered to be (i)nformal product(i)ve act(i)v(i)t(i)es.

58. Informal product(i)ve act(i)v(i)t(i)es performed by persons may also be carr(i)ed out (i)n relat(i)on to formal jobs, (i)f a subset of the tasks and dut(i)es carr(i)ed out are not effect(i)vely covered by formal arrangements.

59. Persons may have one or several formal or (i)nformal jobs, or both, dur(i)ng a g(i)ven reference per(i)od. Dependent workers have an (i)nformal or formal job for each econom(i)c un(i)t on wh(i)ch the worker (i)s dependent. Independent workers have an (i)nformal or formal job for each (i)nformal or formal econom(i)c un(i)t they operate and own or co-own.

60. Employed persons w(i)th an (i)nformal ma(i)n job compr(i)se all employed persons w(i)th an (i)nformal ma(i)n job where the ma(i)n job (i)s the job w(i)th the longest hours usually worked as def(i)ned (i)n the latest (i)nternat(i)onal stat(i)st(i)cal standards on work(i)ng t(i)me. In the absence of (i)nformat(i)on regard(i)ng hours usually worked, other (i)nformat(i)on such as (i)ncome from each job could be used to (i)dent(i)fy the ma(i)n job.

61. Employed persons w(i)th an (i)nformal secondary job compr(i)se all employed persons w(i)th an (i)nformal second job or add(i)t(i)onal jobs.

62. The status (i)n employment categor(i)es are def(i)ned accord(i)ng to the latest standard on the Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment accord(i)ng to type of author(i)ty.

63. Persons hold(i)ng (i)nformal jobs may be categor(i)zed (i)n the (i)nformal sector, formal sector or household own-use product(i)on and commun(i)ty sector, depend(i)ng on the sector of the econom(i)c un(i)t for wh(i)ch the work (i)s carr(i)ed out or, (i)n the case of dependent contractors, on the(i)r formal status (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country (table 3).

Formal employment

64. Formal employment (i)s def(i)ned as any act(i)v(i)ty of persons to produce goods or prov(i)de serv(i)ces for pay or prof(i)t (i)n relat(i)on to a formal job, where the act(i)v(i)t(i)es are effect(i)vely covered by formal arrangements. Formal employment compr(i)ses product(i)ve act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to formal jobs held by:

(a) (i)ndependent workers (i)n employment who operate and own or co-own a formal econom(i)c un(i)t;
(b) dependent contractors who have a formal status (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country and whose act(i)v(i)t(i)es are assoc(i)ated w(i)th effect(i)ve access to formal arrangements;
(c) employees, (i)f the(i)r employment relat(i)onsh(i)p (i)s, (i)n pract(i)ce, formally recogn(i)zed by the employer (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country and assoc(i)ated w(i)th effect(i)ve access to formal arrangements; and
(d) contr(i)but(i)ng fam(i)ly workers carry(i)ng out work for a formal econom(i)c un(i)t and whose work relat(i)onsh(i)ps are formally recogn(i)zed (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country and assoc(i)ated w(i)th effect(i)ve access to formal arrangements.

65. Persons hold(i)ng formal jobs may be categor(i)zed (i)n the formal sector or household own-use product(i)on and commun(i)ty sector depend(i)ng on the sector of the econom(i)c un(i)t for wh(i)ch the work (i)s carr(i)ed out or, (i)n the case of dependent contractors, on the(i)r formal status (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country (table 3).

Table 3. Informal and formal jobs by status (i)n employment and sector

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Note: Cells shaded (i)n dark blue refer to jobs, wh(i)ch, by def(i)n(i)t(i)on, do not ex(i)st (i)n econom(i)c un(i)ts located (i)n the spec(i)f(i)c sector. Cells shaded (i)n l(i)ght blue refer to formal jobs. Informal employment cons(i)sts of the (i)nformal jobs (i)n cells 1–8.

¹Includ(i)ng employers and (i)ndependent workers w(i)thout employees (before ICSE-18 labelled Own-account workers).

²Includ(i)ng the ICSE-18-A categor(i)es 11 and 21.

³Includ(i)ng the ICSE-18-A categor(i)es 12 and 22.

⁴The sector of dependent contractors does not reflect the sector of the econom(i)c un(i)t on wh(i)ch they depend but the(i)r formal status (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country.

⁵The ex(i)stence of formal jobs among contr(i)but(i)ng fam(i)ly workers carry(i)ng out work for an econom(i)c un(i)t (i)n the formal sector depends on the nat(i)onal context (see paragraphs 89–91).

Operat(i)onal def(i)n(i)t(i)ons of (i)nformal and formal jobs

Independent workers

Informal jobs held by (i)ndependent workers

66. Independent workers w(i)th (i)nformal jobs are “(i)ndependent workers (i)n household market enterpr(i)ses” who operate and own or co-own an (i)nformal household un(i)ncorporated market enterpr(i)se.

Formal jobs held by (i)ndependent workers

67. Independent workers (i)n employment w(i)th formal jobs are workers (i)n employment who operate and own or co-own a formal econom(i)c un(i)t. They (i)nclude:

(a) “owner-operators of corporat(i)ons”; and
(b) “(i)ndependent workers (i)n household market enterpr(i)ses”, who operate and own or co-own a formal econom(i)c un(i)t.

Dependent contractors

Informal jobs held by dependent contractors

68. Dependent contractors are cons(i)dered to have (i)nformal jobs (i)f they do not have a formal status (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country or (i)f they do have a formal status but are not assoc(i)ated w(i)th any effect(i)ve access to formal arrangements a(i)med at reduc(i)ng the econom(i)c r(i)sk related to hold(i)ng the spec(i)f(i)c job.

69. Th(i)s (i)ncludes dependent contractors that:

(a) do not own or co-own a formal econom(i)c un(i)t and are not reg(i)stered for tax and thereby do not have a formal status; or
(b) own or co-own a formal econom(i)c un(i)t or are reg(i)stered for tax, and thereby have a formal status but w(i)thout effect(i)ve access to formal arrangements (i)ntended to reduce the econom(i)c r(i)sk related to the job.

70. Depend(i)ng on the nat(i)onal context, effect(i)ve access to formal arrangements (i)ntended to reduce the econom(i)c r(i)sk for dependent contractors could (i)nclude measures that protect the(i)r own reg(i)stered company name and the(i)r phys(i)cal and (i)ntellectual property, that (i)ncrease the(i)r ab(i)l(i)ty to obta(i)n cap(i)tal and that prov(i)de access to job-related occupat(i)onal (i)njury (i)nsurance, health (i)nsurance, pa(i)d s(i)ck leave or pa(i)d parental leave and a job-related pens(i)on, or other types of formal arrangements (i)ntended to decrease the econom(i)c r(i)sk assoc(i)ated w(i)th the job.

71. For the purposes of operat(i)onal(i)zat(i)on, the cons(i)derat(i)ons below should be taken (i)nto account.

(a) In countr(i)es where own(i)ng and operat(i)ng a formal enterpr(i)se or be(i)ng reg(i)stered for tax (i)mpl(i)es effect(i)ve access to such arrangements, hav(i)ng a reg(i)stered enterpr(i)se or be(i)ng reg(i)stered for tax (i)s suff(i)c(i)ent for the job to be cons(i)dered formal, wh(i)le not be(i)ng reg(i)stered thus def(i)nes the job as (i)nformal.
(b) In countr(i)es where the reg(i)strat(i)on of the enterpr(i)se or reg(i)strat(i)on for tax (i)s not d(i)rectly l(i)nked to such measures, reg(i)strat(i)on (i)n and contr(i)but(i)on to other voluntary or mandatory statutory soc(i)al (i)nsurance schemes should be used as an add(i)t(i)onal cr(i)ter(i)on to ensure that the formal job held by the dependent contractor carr(i)es protect(i)ons a(i)m(i)ng at reduc(i)ng the econom(i)c r(i)sk hold(i)ng the spec(i)f(i)c job. The lack of such protect(i)on would thus def(i)ne the job as (i)nformal.

Formal jobs held by dependent contractors

72. Dependent contractors are cons(i)dered to have formal jobs (i)f they have a formal status (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country and have effect(i)ve access to formal arrangements a(i)med at reduc(i)ng the econom(i)c r(i)sk related to hold(i)ng the spec(i)f(i)c job.

73. Th(i)s (i)ncludes dependent contractors that:

(a) operate and own or co-own a formal econom(i)c un(i)t or are reg(i)stered for tax; and
(b) have effect(i)ve access to formal arrangements, as def(i)ned (i)n paragraphs 70–71.

74. Be(i)ng reg(i)stered for tax (i)mpl(i)es that the dependent contractor (i)s, on the(i)r own account or through the econom(i)c un(i)t on wh(i)ch they are dependent, reg(i)stered for tax (i)n relat(i)on to the prof(i)ts made from the act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to the job. Depend(i)ng on the nat(i)onal c(i)rcumstances, th(i)s may refer to a reg(i)ster that (i)mpl(i)es reg(i)strat(i)on of the worker and the act(i)v(i)t(i)es carr(i)ed out by the worker and that obl(i)ges the worker to declare the (i)ncome and expenses related to carry(i)ng out the act(i)v(i)t(i)es for tax purposes as well as any add(i)t(i)onal obl(i)gatory contr(i)but(i)ons depend(i)ng on nat(i)onal regulat(i)ons and laws.

75. The formal status of the econom(i)c un(i)t on wh(i)ch the dependent contractor (i)s dependent does not have a d(i)rect (i)mpact on the (i)nformal or formal status of the job held by the dependent contractor or on the categor(i)zat(i)on of dependent contractors (i)n, respect(i)vely, the (i)nformal sector or the formal sector. Dependent contractors categor(i)zed (i)n the (i)nformal sector hold(i)ng (i)nformal jobs and dependent contractors categor(i)zed (i)n the formal sector hold(i)ng (i)nformal jobs or formal jobs can thereby have a dependency on an (i)nformal econom(i)c un(i)t, a formal econom(i)c un(i)t or a household.

Employees

Informal jobs held by employees

76. Employees are cons(i)dered to have (i)nformal jobs (i)f the(i)r employment relat(i)onsh(i)p (i)s not, (i)n pract(i)ce, formally recogn(i)zed by the employer (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country or (i)s not effect(i)vely covered by formal arrangements such as labour leg(i)slat(i)on, soc(i)al protect(i)on, (i)ncome taxat(i)on or ent(i)tlement to employment benef(i)ts.

77. Employees w(i)th (i)nformal jobs (i)nclude:

(a) permanent employees;
(b) f(i)xed-term employees;
(c) short-term and casual employees; and
(d) pa(i)d apprent(i)ces, tra(i)nees and (i)nterns,

who do not have access to effect(i)ve formal arrangements such as statutory soc(i)al (i)nsurance, access to pa(i)d annual leave and pa(i)d s(i)ck leave.

78. A def(i)n(i)ng character(i)st(i)c of (i)nformal jobs held by employees (i)s the absence of the employer’s contr(i)but(i)on to statutory soc(i)al (i)nsurance. “Employer’s contr(i)but(i)on to statutory soc(i)al (i)nsurance” refers to whether the employer contr(i)butes fully or partly to a job-dependent statutory soc(i)al (i)nsurance scheme on behalf of the employee. It therefore excludes un(i)versal non-contr(i)butory soc(i)al protect(i)on schemes and voluntary contr(i)but(i)ons made by the employer or employee, (i)f th(i)s does not (i)mply a formal status of the econom(i)c un(i)t and the worker.

(a) When operat(i)onal(i)z(i)ng th(i)s cr(i)ter(i)on, countr(i)es should take the nat(i)onal context and soc(i)al secur(i)ty laws (i)nto account as well as the requ(i)rements set out (i)n paragraph 81. The operat(i)onal(i)zat(i)on should be based on one or more spec(i)f(i)c statutory soc(i)al (i)nsurance schemes.
(b) Typ(i)cally, the employer’s contr(i)but(i)on to a pens(i)on fund on behalf of the employee would be relevant for operat(i)onal (i)dent(i)f(i)cat(i)on. Other types of (i)nsurance, such as occupat(i)onal (i)njury (i)nsurance, health (i)nsurance or unemployment (i)nsurance, could also be of relevance, depend(i)ng on the nat(i)onal context.

79. Add(i)t(i)onal character(i)st(i)cs that may be relevant for the stat(i)st(i)cal (i)dent(i)f(i)cat(i)on of (i)nformal jobs held by employees are a lack of access to pa(i)d annual leave or a lack of access to pa(i)d s(i)ck leave.

(a) Access to pa(i)d annual leave (i)s the employee’s ent(i)tlement and ab(i)l(i)ty to take pa(i)d t(i)me off granted by the employer or to be compensated for unused annual leave. The number of days granted by the employer may vary between countr(i)es and also w(i)th(i)n the same country (for (i)nstance, between d(i)fferent (i)ndustr(i)es and occupat(i)ons), depend(i)ng on nat(i)onal labour laws and regulat(i)ons. It (i)s not suff(i)c(i)ent to have a legal r(i)ght to pa(i)d annual leave (i)f the worker does not have access to (i)t (i)n pract(i)ce.
(b) Access to pa(i)d s(i)ck leave (i)s the employee’s ent(i)tlement and ab(i)l(i)ty to take pa(i)d leave from employment due to personal s(i)ckness or (i)njury. The number of days for wh(i)ch the worker can rece(i)ve payment dur(i)ng s(i)ckness or (i)njury may vary between countr(i)es and also w(i)th(i)n the same country (for (i)nstance, between d(i)fferent (i)ndustr(i)es and occupat(i)ons), depend(i)ng on nat(i)onal labour laws and regulat(i)ons. It (i)s not suff(i)c(i)ent to have a legal r(i)ght to pa(i)d s(i)ck leave (i)f the worker does not have access to (i)t (i)n pract(i)ce.

80. Depend(i)ng on the nat(i)onal c(i)rcumstances, add(i)t(i)onal character(i)st(i)cs such as the non-ex(i)stence of a wr(i)tten contract, the non-deduct(i)on of (i)ncome tax by the employer and the lack of access to severance pay, advanced not(i)ce of d(i)sm(i)ssal, matern(i)ty leave, patern(i)ty leave or parental leave m(i)ght be relevant to support the def(i)n(i)t(i)on of (i)nformal jobs held by employees.

81. The cr(i)ter(i)a used for def(i)n(i)ng (i)nformal jobs held by employees need to be further operat(i)onal(i)zed (i)n accordance w(i)th nat(i)onal c(i)rcumstances. The follow(i)ng requ(i)rements for a g(i)ven cr(i)ter(i)on used should be cons(i)dered:

(a) Job spec(i)f(i)c: The cr(i)ter(i)on used must be dependent on hold(i)ng a part(i)cular job and not un(i)versal.
(b) In relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country: Meet(i)ng the cr(i)ter(i)on should reflect a formal recogn(i)t(i)on of the job by the employer (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve system of the country and (i)mply that both the econom(i)c un(i)t and the job held by the employee can be cons(i)dered formal (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve system of the country.
(c) Capture the s(i)tuat(i)on (i)n pract(i)ce: The operat(i)onal(i)zat(i)on of a g(i)ven cr(i)ter(i)on should, to the extent poss(i)ble, reflect that the employer (i)n pract(i)ce fulf(i)ls a g(i)ven obl(i)gat(i)on.

82. Employees hold(i)ng an (i)nformal job can carry out act(i)v(i)t(i)es (i)n any type of (i)ndustry, (i)n any place of work for any type of econom(i)c un(i)t (formal, (i)nformal or a household produc(i)ng for own f(i)nal use).

Formal jobs held by employees

83. Employees are cons(i)dered to have formal jobs (i)f the(i)r employment relat(i)onsh(i)p (i)s, (i)n pract(i)ce, formally recogn(i)zed by the employer (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country and assoc(i)ated w(i)th effect(i)ve access to formal arrangements such as labour leg(i)slat(i)on, soc(i)al protect(i)on, (i)ncome taxat(i)on or ent(i)tlement to employment benef(i)ts.

84. “Employer’s contr(i)but(i)ons to statutory soc(i)al (i)nsurance” on behalf of the employee, as def(i)ned (i)n paragraph 78, character(i)ze the job held by the employee as formal.

85. Add(i)t(i)onal character(i)st(i)cs that may be relevant for the stat(i)st(i)cal (i)dent(i)f(i)cat(i)on of formal jobs held by employees are access to pa(i)d annual leave and access to pa(i)d s(i)ck leave.

86. Depend(i)ng on the nat(i)onal c(i)rcumstances, add(i)t(i)onal character(i)st(i)cs such as the deduct(i)on of (i)ncome tax by the employer on behalf of the employee, el(i)g(i)b(i)l(i)ty for severance pay, advanced not(i)ce of d(i)sm(i)ssal and access to matern(i)ty leave, patern(i)ty leave or parental leave m(i)ght be relevant to support the def(i)n(i)t(i)on of formal jobs held by employees.

87. An employee hold(i)ng a formal job by def(i)n(i)t(i)on carr(i)es out work for a formal econom(i)c un(i)t, unless the employer (i)s a household (i)n the household own-use product(i)on and commun(i)ty sector.

88. L(i)ke all other categor(i)es of workers (i)n employment, countr(i)es should ensure that formal jobs and (i)nformal jobs held by employees are mutually exclus(i)ve categor(i)es. The same set of cr(i)ter(i)a should therefore be appl(i)ed to def(i)ne jobs as formal and (i)nformal. Irrespect(i)ve of any nat(i)onal adaptat(i)on of the operat(i)onal def(i)n(i)t(i)on, (i)t (i)s recommended to collect (i)nformat(i)on regard(i)ng employer’s contr(i)but(i)on to statutory soc(i)al (i)nsurance, access to pa(i)d annual leave and pa(i)d s(i)ck leave to enable an assessment of the coverage of formal arrangements for employees hold(i)ng (i)nformal and formal jobs and to fac(i)l(i)tate the creat(i)on of reg(i)onal and global est(i)mates.

Contr(i)but(i)ng fam(i)ly workers

Informal and formal jobs held by contr(i)but(i)ng fam(i)ly workers

89. In countr(i)es where formal arrangements, such as the poss(i)b(i)l(i)ty to reg(i)ster and contr(i)bute to jobrelated statutory soc(i)al (i)nsurance, are not ava(i)lable for contr(i)but(i)ng fam(i)ly workers, such workers can be cons(i)dered to have (i)nformal jobs by default.

90. In countr(i)es that have such formal arrangements (i)n place for contr(i)but(i)ng fam(i)ly workers, these workers can be cons(i)dered as hav(i)ng:

(a) (i)nformal jobs (i)f the(i)r job (i)s not, (i)n pract(i)ce, formally recogn(i)zed (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework. Th(i)s (i)ncludes contr(i)but(i)ng fam(i)ly workers who:
- ( (i) ) carry out work for an (i)nformal household un(i)ncorporated market enterpr(i)se; or
- ((i)(i)) whose job (i)s not reg(i)stered, or for whom contr(i)but(i)ons are not made to job-related statutory soc(i)al (i)nsurance; (b) formal jobs (i)f:
(b) the econom(i)c un(i)t for wh(i)ch the work (i)s carr(i)ed out (i)s formal; and
- ( (i) ) the job (i)s reg(i)stered (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country; and
- ((i)(i)) contr(i)but(i)ons are made to a job-related statutory soc(i)al (i)nsurance scheme.

91. Reg(i)strat(i)on of the job held by the contr(i)but(i)ng fam(i)ly worker and contr(i)but(i)on to a job-related statutory soc(i)al (i)nsurance scheme (i)mpl(i)es that the worker (i)s employed formally (i)n that job. The type of statutory soc(i)al (i)nsurance relevant for operat(i)onal(i)z(i)ng the cr(i)ter(i)on depends on the nat(i)onal context but would (i)nclude mandatory or voluntary statutory soc(i)al (i)nsurances such as a pens(i)on fund (i)f th(i)s (i)mpl(i)es a formal status of the worker.

Persons (i)n formal employment carry(i)ng out partly (i)nformal act(i)v(i)t(i)es

92. Depend(i)ng on the nat(i)onal context and need, countr(i)es may (i)dent(i)fy the number of persons w(i)th formal jobs carry(i)ng out partly (i)nformal product(i)ve act(i)v(i)t(i)es and hours spent on or earn(i)ngs rece(i)ved from pa(i)d (i)nformal act(i)v(i)t(i)es (i)n relat(i)on to formal jobs.

93. Th(i)s would complement data on persons (i)n (i)nformal employment and prov(i)de (i)nput to the SNA for a more comprehens(i)ve measurement of (i)nformal product(i)ve act(i)v(i)t(i)es (i)n the (i)nformal market economy.

94. Partly (i)nformal pa(i)d act(i)v(i)t(i)es (i)nclude act(i)v(i)t(i)es (i)n relat(i)on to formal employment carr(i)ed out by:

(a) employees where part of the pa(i)d hours or tasks carr(i)ed out (i)n relat(i)on to the formal job are not covered by formal arrangements, for example when earn(i)ngs and hours worked are not declared for taxat(i)on or mandatory job-related soc(i)al contr(i)but(i)ons.
(b) (i)ndependent workers and dependent contractors where part of the act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to the formal job are not covered by formal arrangements, for example when (i)ncome (i)s not declared for taxat(i)on.

95. Stat(i)st(i)cs on partly (i)nformal pa(i)d act(i)v(i)t(i)es (i)n formal jobs can (i)nclude est(i)mates of the number of pa(i)d work(i)ng hours (i)n formal jobs and related earn(i)ngs and (i)ncome for both formal and (i)nformal act(i)v(i)t(i)es.

96. Depend(i)ng on the nat(i)onal context and need, stat(i)st(i)cs on pa(i)d (i)nformal act(i)v(i)t(i)es (i)n relat(i)on to formal jobs should be complemented w(i)th est(i)mates on unpa(i)d hours for employees whose remunerat(i)on (i)s d(i)rectly dependent on the number of hours worked.

Informal product(i)ve act(i)v(i)t(i)es and forms of work other than employment

97. Work other than employment (i)s cons(i)dered (i)nformal work (i)f the act(i)v(i)t(i)es are not effect(i)vely covered by formal arrangements. Th(i)s compr(i)ses (i)nformal product(i)ve act(i)v(i)t(i)es (i)n relat(i)on to ownuse product(i)on work, volunteer work, unpa(i)d tra(i)nee work and other work act(i)v(i)t(i)es where the unpa(i)d work (i)s not covered by formal arrangements such as regulat(i)ons and prov(i)s(i)ons that promote or fac(i)l(i)tate the work and protect and regulate the act(i)ons and funct(i)ons of the worker.

98. Measur(i)ng the (i)nformal or formal nature of work other than employment supports the recogn(i)t(i)on and valuat(i)on of all forms of work, essent(i)al for ach(i)ev(i)ng development goals such as atta(i)n(i)ng gender equal(i)ty, soc(i)al (i)nclus(i)on and soc(i)al protect(i)on and reduc(i)ng poverty.

Informal and formal own-use product(i)on work

99. Informal own-use product(i)on work compr(i)ses act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to own-use product(i)on work that are not effect(i)vely covered by formal arrangements. It (i)ncludes product(i)ve act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to a work act(i)v(i)ty def(i)ned accord(i)ng to the latest vers(i)on of the Internat(i)onal Class(i)f(i)cat(i)on of Status at Work as be(i)ng carr(i)ed out by:

(a) workers (i)n own-use prov(i)s(i)on of serv(i)ces; and
(b) workers (i)n own-use product(i)on of goods,

who are not effect(i)vely covered by formal arrangements that a(i)m to promote or fac(i)l(i)tate the work and protect and regulate the(i)r act(i)ons and funct(i)ons.

100. Depend(i)ng on the nat(i)onal context, own-use product(i)on work can be cons(i)dered formal (i)f the act(i)v(i)t(i)es carr(i)ed out are covered by formal arrangements (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country, such as reg(i)strat(i)on of the act(i)v(i)t(i)es, access to (i)nsurance aga(i)nst workrelated (i)njur(i)es or acc(i)dents, access to soc(i)al (i)nsurance such as a pens(i)on fund, cash transfers to support the work or other measures a(i)m(i)ng to protect the worker and regulate and fac(i)l(i)tate the act(i)v(i)t(i)es carr(i)ed out.

Informal and formal volunteer work

101. Informal volunteer work compr(i)ses act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to volunteer work that are not effect(i)vely covered by formal arrangements. It (i)ncludes product(i)ve act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to a work act(i)v(i)ty def(i)ned accord(i)ng to the latest vers(i)on of the Internat(i)onal Class(i)f(i)cat(i)on of Status at Work as be(i)ng carr(i)ed out by:

(a) d(i)rect volunteers; or
(b) organ(i)zat(i)on-based volunteers, when:
- ((i) ) the volunteer carr(i)es out work for or through a non-prof(i)t organ(i)zat(i)on or other econom(i)c un(i)t that (i)s not cons(i)dered a formal econom(i)c un(i)t; or
- ((i)(i)) carr(i)es out work for or through a non-prof(i)t organ(i)zat(i)on or other econom(i)c un(i)t that (i)s cons(i)dered a formal econom(i)c un(i)t when the volunteer (i)s not covered by formal arrangements that a(i)m to protect the worker and regulate and fac(i)l(i)tate the act(i)v(i)t(i)es carr(i)ed out.

102. A person carry(i)ng out (i)nformal volunteer work can carry out work for a household or non-formal non-prof(i)t organ(i)zat(i)on (i)n the household own-use product(i)on and commun(i)ty sector, an (i)nformal household un(i)ncorporated market enterpr(i)se or a formal econom(i)c un(i)t.

103. Volunteer work can be cons(i)dered formal (i)f:

(a) the work act(i)v(i)ty (i)s def(i)ned as organ(i)zat(i)on-based volunteer work; and
(b) the work (i)s carr(i)ed out (i)n a formal econom(i)c un(i)t; and
(c) the volunteer and the act(i)v(i)t(i)es carr(i)ed out are covered by formal arrangements (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country such as reg(i)strat(i)on of the act(i)v(i)t(i)es, access to (i)nsurance aga(i)nst work-related (i)njur(i)es or acc(i)dents and access to health (i)nsurance or other measures a(i)m(i)ng to protect the worker and fac(i)l(i)tate and regulate the work.

Informal and formal unpa(i)d tra(i)nee work

104. Informal unpa(i)d tra(i)nee work compr(i)ses act(i)v(i)t(i)es carr(i)ed out (i)n relat(i)on to unpa(i)d tra(i)nee work as def(i)ned by the latest standards of work and employment that are not effect(i)vely covered by formal arrangements a(i)m(i)ng to protect the worker and fac(i)l(i)tate and regulate the work carr(i)ed out by worker.

105. Informal unpa(i)d tra(i)nee work can be performed by a person work(i)ng for a household, an (i)nformal household un(i)ncorporated market enterpr(i)se or a formal econom(i)c un(i)t.

106. Unpa(i)d tra(i)nee work carr(i)ed out for an (i)nformal household un(i)ncorporated market enterpr(i)se (i)s, by default, cons(i)dered to be (i)nformal unpa(i)d tra(i)nee work.

107. Unpa(i)d tra(i)nee work carr(i)ed out for a formal econom(i)c un(i)t or an household can, depend(i)ng on the nat(i)onal context, be cons(i)dered formal (i)f the worker and the act(i)v(i)t(i)es carr(i)ed out are covered by formal arrangements (i)n relat(i)on to the legal adm(i)n(i)strat(i)ve framework of the country, such as reg(i)strat(i)on of the act(i)v(i)t(i)es, formal recogn(i)t(i)on of the exper(i)ence and sk(i)lls acqu(i)red, access to soc(i)al (i)nsurance and (i)nsurance aga(i)nst work-related (i)njur(i)es or acc(i)dents, or other measures a(i)m(i)ng to protect the worker and fac(i)l(i)tate and regulate the work.

Other work act(i)v(i)t(i)es

108. Other work act(i)v(i)t(i)es, such as compulsory work performed w(i)thout pay, can, depend(i)ng on the nat(i)onal context, be cons(i)dered formal work (i)f (i)t (i)s recogn(i)zed by and conducted under the control of the nat(i)onal author(i)t(i)es and general government. If not recogn(i)zed by the legal adm(i)n(i)strat(i)ve framework of the country, then the act(i)v(i)t(i)es should be cons(i)dered (i)nformal.

Essent(i)al categor(i)es

109. Accord(i)ng to the nat(i)onal context, countr(i)es should produce stat(i)st(i)cs on essent(i)al categor(i)es of (i)nformal work other than employment, where those act(i)v(i)t(i)es are prevalent. The (i)dent(i)f(i)cat(i)on of essent(i)al categor(i)es of (i)nformal product(i)ve act(i)v(i)t(i)es should h(i)ghl(i)ght (i)mportant groups of persons engaged (i)n (i)nformal product(i)on not (i)ntended to generate pay or prof(i)t that m(i)ght be exposed to a h(i)gh degree of econom(i)c r(i)sk w(i)thout coverage by formal arrangements to fac(i)l(i)tate the work, protect the person and regulate the product(i)ve act(i)v(i)t(i)es carr(i)ed out by the person.

110. Essent(i)al categor(i)es of (i)nformal work other than employment (i)nclude subs(i)stence foodstuff producers and workers carry(i)ng out (i)nformal unpa(i)d tra(i)nee work.

111. The (i)dent(i)f(i)cat(i)on of (i)nformal subs(i)stence foodstuff producers (i)n countr(i)es where th(i)s (i)s s(i)gn(i)f(i)cant (i)s an (i)mportant complement to the (i)dent(i)f(i)cat(i)on of (i)nformal employment and contr(i)butes to creat(i)ng a more comprehens(i)ve stat(i)st(i)cal p(i)cture of the structure of (i)nformal(i)ty w(i)th(i)n the country. The separate (i)dent(i)f(i)cat(i)on of subs(i)stence workers and a d(i)st(i)nct(i)on between those who m(i)ght be covered by arrangements a(i)m(i)ng to support and fac(i)l(i)tate the work or to extend soc(i)al protect(i)on would allow an assessment of the outreach of such schemes.

112. The (i)dent(i)f(i)cat(i)on of (i)nformal unpa(i)d tra(i)nee work as an essent(i)al category of (i)nformal product(i)ve act(i)v(i)t(i)es enables countr(i)es to prov(i)de (i)nformat(i)on on the prevalence of (i)nformal and formal pa(i)d and unpa(i)d tra(i)nee work, thus fac(i)l(i)tat(i)ng a better understand(i)ng of school-to-work trans(i)t(i)ons and the formal and (i)nformal nature of tra(i)nees w(i)th(i)n the country.

113. Add(i)t(i)onal categor(i)es or doma(i)ns of (i)nformal work can be (i)dent(i)f(i)ed, depend(i)ng on the nat(i)onal need and context and on spec(i)f(i)c analyt(i)cal or pol(i)cy (i)nterest. These could (i)nclude categor(i)es or doma(i)ns for wh(i)ch there (i)s a demand for analys(i)s from a gender perspect(i)ve, such as (i)nformal and formal care work across d(i)fferent forms of work or doma(i)ns of part(i)cular focus, such as (i)nformal and formal work (i)n relat(i)on to agr(i)cultural product(i)on or d(i)g(i)tal platform work. D(i)fferent analyt(i)cal doma(i)ns of the (i)nformal economy can be extended to other pr(i)or(i)ty areas, (i)ndustr(i)es and vulnerable groups.

Data sources and gu(i)del(i)nes for data collect(i)on

114. The standards for stat(i)st(i)cs on the (i)nformal economy descr(i)bed (i)n th(i)s resolut(i)on prov(i)de the conceptual bas(i)s for stat(i)st(i)cs on (i)nformal product(i)ve act(i)v(i)t(i)es carr(i)ed out by persons and econom(i)c un(i)ts to be comp(i)led (i)n a harmon(i)ous and comparable manner from d(i)fferent data sources. The sources and data collect(i)on methods w(i)ll depend on nat(i)onal pr(i)or(i)t(i)es, measurement object(i)ves and the relevant reference un(i)t.

115. The scope of data on the (i)nformal economy to be collected at the nat(i)onal level should reflect nat(i)onal pr(i)or(i)t(i)es. G(i)ven the broad scope of the standards, complete coverage of the des(i)red elements m(i)ght requ(i)re the use of mult(i)ple sources. A close collaborat(i)on between d(i)fferent nat(i)onal (i)nst(i)tut(i)ons, (i)nclud(i)ng the ma(i)n users of the data, nat(i)onal stat(i)st(i)cal off(i)ces and other nat(i)onal data producers, and between producers of econom(i)c stat(i)st(i)cs and labour stat(i)st(i)cs, (i)s therefore of (i)mportance to ensure harmon(i)zat(i)on across sources and (i)nst(i)tut(i)ons.

116. D(i)fferent data sources each have the(i)r own strengths and l(i)m(i)tat(i)ons and can be v(i)ewed as complementary, to prov(i)de data on d(i)fferent aspects of the (i)nformal economy. Regardless of the data source, (i)n order to fac(i)l(i)tate (i)nternat(i)onal comparab(i)l(i)ty, data on the (i)nformal economy should be produced accord(i)ng to the most recent relevant ILO methodolog(i)cal gu(i)dance.

117. For any data source the qual(i)ty of the data generated w(i)ll be determ(i)ned by the comb(i)nat(i)on of methodolog(i)es used and concepts appl(i)ed. D(i)fferences (i)n survey sample s(i)zes, populat(i)on coverage, un(i)t of observat(i)on, ab(i)l(i)ty to apply def(i)n(i)t(i)ons comprehens(i)vely and range of data generated, among others, w(i)ll have (i)mpl(i)cat(i)ons (i)n respect of prec(i)s(i)on, b(i)as and comparab(i)l(i)ty across sources. When plann(i)ng the system of stat(i)st(i)cs on (i)nformal(i)ty, close attent(i)on should be pa(i)d to the methodolog(i)es used to ensure that est(i)mates generated are as representat(i)ve as poss(i)ble of the target populat(i)on, that the coverage of (i)nd(i)cators produced (i)s (i)n l(i)ne w(i)th object(i)ves, and that samples are adequate to ach(i)eve des(i)red levels of prec(i)s(i)on.

118. To enable clear and appropr(i)ate (i)nterpretat(i)on of the stat(i)st(i)cs (i)t (i)s cruc(i)al that data qual(i)ty (i)s assessed and reported on transparently. Metadata descr(i)b(i)ng the source, the concepts, the methodolog(i)es, and the results generated should be publ(i)shed alongs(i)de any publ(i)shed data.

119. In general, household-based surveys, part(i)cularly labour force surveys, are (i)mportant data sources for produc(i)ng stat(i)st(i)cs w(i)th persons and jobs as reference un(i)ts. Labour force surveys, generally character(i)zed by deta(i)led sequences of quest(i)ons on the character(i)st(i)cs of jobs, are typ(i)cally the recommended source of stat(i)st(i)cs for mon(i)tor(i)ng the extent of (i)nformal and formal jobs, assess(i)ng levels of (i)nformal(i)ty and formal(i)ty and levels of protect(i)on and vulnerab(i)l(i)ty, (i)dent(i)fy(i)ng persons most exposed to and most represented among (i)nformal jobs, and assess(i)ng the work(i)ng cond(i)t(i)ons of persons (i)n formal and (i)nformal jobs. They are also a useful source to (i)dent(i)fy dr(i)vers of (i)nformal(i)ty assoc(i)ated w(i)th the structure of the labour market. A comb(i)ned household-establ(i)shment survey (m(i)xed-survey, 1–2 survey or 1–2–3 survey) may be able to meet the same object(i)ves.

120. Other household surveys, such as surveys on poverty and l(i)v(i)ng standards, or household (i)ncome and expend(i)ture surveys, generally (i)nclude less deta(i)led sequences of quest(i)ons on labour, and may be des(i)gned w(i)th smaller sample s(i)zes than a typ(i)cal labour force survey. When such surveys (i)nclude quest(i)ons to (i)dent(i)fy persons hav(i)ng (i)nformal and formal jobs accord(i)ng to the cr(i)ter(i)a def(i)ned (i)n th(i)s resolut(i)on, they can be part(i)cularly su(i)ted to the product(i)on of data to analyse the relat(i)onsh(i)p between (i)nformal(i)ty and the ma(i)n top(i)cs covered by the survey such as poverty, the level and compos(i)t(i)on of (i)ncome and expend(i)ture, and access to soc(i)al protect(i)on beyond jobrelated contr(i)butory soc(i)al secur(i)ty.

121. Other spec(i)al(i)zed household surveys, such as t(i)me-use surveys and household-based surveys on agr(i)culture, educat(i)on and tra(i)n(i)ng, or spec(i)al(i)zed surveys on d(i)g(i)tal platform employment and labour m(i)grat(i)on, may be better su(i)ted for the measurement of spec(i)f(i)c work(i)ng act(i)v(i)t(i)es, or for focus(i)ng on spec(i)f(i)c subgroups of the populat(i)on. T(i)me-use surveys can be an (i)mportant source for the product(i)on of stat(i)st(i)cs on part(i)c(i)pat(i)on and t(i)me spent (i)n (i)nformal unpa(i)d work such as the own-use prov(i)s(i)on of serv(i)ces ((i)n part(i)cular (i)nformal unpa(i)d domest(i)c work and care work). Surveys target(i)ng spec(i)f(i)c subgroups of the populat(i)on m(i)ght be more appropr(i)ate for groups whose total number m(i)ght be small (i)n labour force survey samples, l(i)m(i)t(i)ng the poss(i)b(i)l(i)ty to produce rel(i)able stat(i)st(i)cs. It should be taken (i)nto account that the constra(i)nts of sample surveys often mean that certa(i)n groups at greater r(i)sk of (i)nformal(i)ty, such as persons w(i)th a d(i)sab(i)l(i)ty, m(i)grant workers or d(i)g(i)tal platform workers, are also those l(i)kely to be under-represented (i)n the sample.

122. Nat(i)onal populat(i)on censuses are an (i)mportant source of stat(i)st(i)cs on employment and often prov(i)de the bas(i)s for des(i)gn(i)ng survey samples, (i)ntegrat(i)ng nat(i)onal data sources and produc(i)ng small area est(i)mates. Includ(i)ng quest(i)ons to class(i)fy those employed accord(i)ng to the formal or (i)nformal nature of the(i)r job, can allow the generat(i)on of est(i)mates of (i)nformal(i)ty for small geograph(i)cal areas as well as for small populat(i)on groups. The need to l(i)m(i)t the number of quest(i)ons that can be (i)ncluded (i)n most populat(i)on censuses could requ(i)re the number of cr(i)ter(i)a to def(i)ne formal and (i)nformal jobs be l(i)m(i)ted to a smaller set among those def(i)ned (i)n th(i)s resolut(i)on.

123. Econom(i)c censuses, enterpr(i)se-based surveys and m(i)xed surveys are the ma(i)n data sources for the analys(i)s of (i)nformal sector and formal sector econom(i)c un(i)ts, the(i)r product(i)on and contr(i)but(i)on to GDP, and the(i)r character(i)st(i)cs. In general, due attent(i)on should be pa(i)d to ensur(i)ng that the scope of act(i)v(i)t(i)es and type of econom(i)c un(i)ts covered ((i)n terms of s(i)ze, place of work, econom(i)c act(i)v(i)ty and (i)nst(i)tut(i)onal sector) do not (i)mply an exclus(i)on of econom(i)c un(i)ts l(i)kely to be (i)nformal (for example, (i)ndependent workers w(i)thout employees, un(i)ts under a certa(i)n s(i)ze threshold, un(i)ts carry(i)ng out agr(i)cultural act(i)v(i)t(i)es, un(i)ts w(i)th non-f(i)xed prem(i)ses or home-based act(i)v(i)t(i)es). To ach(i)eve comprehens(i)ve coverage of (i)nformal sector un(i)ts, spec(i)al attent(i)on should be pa(i)d to the sampl(i)ng methods and frame used. The use of area-based sampl(i)ng frames can be a useful method to establ(i)sh an exhaust(i)ve l(i)st of un(i)ts cover(i)ng household-based act(i)v(i)t(i)es and act(i)v(i)t(i)es tak(i)ng place (i)n non-f(i)xed locat(i)ons.

124. M(i)xed surveys, that (i)s comb(i)ned mult(i)-stage household and establ(i)shment surveys, are spec(i)f(i)cally des(i)gned to (i)dent(i)fy and target econom(i)c un(i)ts (i)n the (i)nformal sector. Der(i)v(i)ng the(i)r sample from a representat(i)ve household survey, such as the labour force survey, ensures the (i)nclus(i)on of all types of act(i)v(i)t(i)es w(i)th(i)n the (i)nformal sector, home-based act(i)v(i)t(i)es, act(i)v(i)t(i)es carr(i)ed out from f(i)xed locat(i)ons as well as non-f(i)xed locat(i)ons. Th(i)s requ(i)res an (i)dent(i)f(i)cat(i)on of econom(i)c un(i)ts (i)n the (i)nformal sector, through the(i)r owner(s), (i)n the f(i)rst phase. Care should be taken to ensure a suff(i)c(i)ent s(i)zed representat(i)ve sample of econom(i)c un(i)ts (i)n the (i)nformal sector.

125. Adm(i)n(i)strat(i)ve records can be used as part of an (i)nd(i)rect est(i)mat(i)on of (i)nformal employment and of the (i)nformal sector, because they prov(i)de (i)nformat(i)on on formal employment and the formal sector. The number of persons covered by formal arrangements can, for example, be est(i)mated (i)n taxat(i)on systems, employment serv(i)ces and soc(i)al secur(i)ty schemes. The s(i)ze of the formal sector could be est(i)mated by the use of bus(i)ness reg(i)sters, tax reg(i)sters and the l(i)ke. The poss(i)b(i)l(i)t(i)es to do so depend on the structure and content of the country-spec(i)f(i)c adm(i)n(i)strat(i)ve sources. Pr(i)or(i)ty should however, (i)n general be g(i)ven to d(i)rect methods based on household surveys and enterpr(i)se-based surveys or m(i)xed surveys for more accurate est(i)mat(i)ons of the total (i)nformal employment and the (i)nformal sector. Adm(i)n(i)strat(i)ve (i)nformat(i)on such as legal (i)dent(i)ty of the econom(i)c un(i)t, taxat(i)on, declared earn(i)ngs or (i)ncome and contr(i)but(i)ons to soc(i)al (i)nsurance (i)n relat(i)on to a spec(i)f(i)c job can also be used as relevant aux(i)l(i)ary (i)nformat(i)on (i)n surveys to further support the (i)dent(i)f(i)cat(i)on of formal jobs and formal econom(i)c un(i)ts. Th(i)s requ(i)res that a d(i)rect l(i)nkage at the level of persons and jobs or econom(i)c un(i)ts (i)s feas(i)ble (i)n the country.

Ind(i)cators

126. To support the development of nat(i)onal pol(i)c(i)es and (i)ntervent(i)ons for address(i)ng the consequences of (i)nformal(i)ty and fac(i)l(i)tat(i)ng trans(i)t(i)ons to formal(i)ty based on ev(i)dence, a set of (i)nd(i)cators should be selected reflect(i)ng the nat(i)onal context, pr(i)or(i)t(i)es and object(i)ves. The (i)nd(i)cators to be produced w(i)ll depend on the spec(i)f(i)c component of the (i)nformal economy under scrut(i)ny, data sources and nat(i)onal pol(i)cy goals. The (i)nd(i)cators recommended (i)n th(i)s resolut(i)on are supported by the broader Informal Economy Ind(i)cator Framework¹, wh(i)ch prov(i)des a complete set of (i)nd(i)cators and measures that m(i)ght be relevant, depend(i)ng on the nat(i)onal sett(i)ngs.

127. The (i)nd(i)cators l(i)nked to the d(i)fferent components of the (i)nformal economy, as def(i)ned by th(i)s resolut(i)on, are structured to prov(i)de (i)nformat(i)on on s(i)x d(i)mens(i)ons of (i)nformal(i)ty:

(a) the extent of (i)nformal(i)ty – the prevalence of (i)nformal(i)ty across jobs, econom(i)c un(i)ts and act(i)v(i)t(i)es;
(b) the compos(i)t(i)on of (i)nformal(i)ty – the d(i)str(i)but(i)on of (i)nformal and formal jobs and econom(i)c un(i)ts by soc(i)o-demograph(i)c, employment-related character(i)st(i)cs and character(i)st(i)cs of the econom(i)c un(i)ts and soc(i)o-demograph(i)c character(i)st(i)cs of the owner or owners;
(c) the exposure to (i)nformal(i)ty – the percentage of persons w(i)th (i)nformal ma(i)n jobs and of econom(i)c un(i)ts (i)n the (i)nformal sector by soc(i)o-demograph(i)c, employment-related character(i)st(i)cs and character(i)st(i)cs of the econom(i)c un(i)ts and soc(i)o-demograph(i)c character(i)st(i)cs of the owner or owners;
(d) work(i)ng cond(i)t(i)ons and levels of protect(i)on for those (i)n (i)nformal and formal employment, product(i)v(i)ty and factors constra(i)n(i)ng or enhanc(i)ng the development and susta(i)nab(i)l(i)ty of (i)nformal econom(i)c un(i)ts and formal ones;
(e) contextual vulnerab(i)l(i)t(i)es – (i)nclud(i)ng poverty, (i)nequal(i)t(i)es, d(i)scr(i)m(i)nat(i)on and other cond(i)t(i)ons such as l(i)m(i)ted or no access to land and natural resources; and w(i)th regard to all (i)ncome sources and soc(i)al protect(i)on from all household members, as well as the compos(i)t(i)on of households.; and
(f) other structural factors.²

Informal employment³

128. All countr(i)es are encouraged to produce headl(i)ne (i)nd(i)cators as set out below, referr(i)ng to the extent (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(a)) and the compos(i)t(i)on (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(b)) of (i)nformal employment and the exposure to (i)nformal(i)ty (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(c)), w(i)th a regular frequency for example at quarterly or yearly (i)ntervals.

(a(Number of persons w(i)th an (i)nformal ma(i)n job and the percentage of (i)nformal ma(i)n jobs (i)n relat(i)on to total employment, by econom(i)c act(i)v(i)ty and by sex.
(b) Number and d(i)str(i)but(i)on of persons w(i)th an (i)nformal ma(i)n job by (i)nformal sector, formal sector, household own-use product(i)on and commun(i)ty sector⁴ and status (i)n employment and by sex.
(c) D(i)str(i)but(i)on of persons w(i)th an (i)nformal or formal ma(i)n job by soc(i)o-demograph(i)c character(i)st(i)cs and employment-related character(i)st(i)cs and by sex.
(d) Percentage of employed persons w(i)th an (i)nformal ma(i)n job by soc(i)o-demograph(i)c and employment-related character(i)st(i)cs and by sex.

129. Depend(i)ng on feas(i)b(i)l(i)ty and on nat(i)onal needs and pr(i)or(i)t(i)es, (i)t (i)s recommended that countr(i)es prov(i)de the (i)nd(i)cators relat(i)ng to the d(i)mens(i)ons descr(i)bed (i)n paragraph 127(d) and (e), as outl(i)ned below, w(i)th some regular(i)ty (for example, every 1–5 years). Th(i)s w(i)ll fac(i)l(i)tate a better understand(i)ng of work(i)ng cond(i)t(i)ons and contextual vulnerab(i)l(i)t(i)es assoc(i)ated w(i)th (i)nformal and formal jobs.

130. The recommended (i)nd(i)cators for assess(i)ng levels of protect(i)on, decent work def(i)c(i)ts assoc(i)ated w(i)th (i)nformal(i)ty, and whether formal jobs are assoc(i)ated w(i)th decent work(i)ng cond(i)t(i)ons are set out below.

(a) Ind(i)cators to prov(i)de (i)nformat(i)on on levels of protect(i)on among workers w(i)th (i)nformal ma(i)n jobs and formal ma(i)n jobs are:
- ((i) ) Percentage of (i)ndependent workers, respect(i)vely, w(i)th an (i)nformal or a formal ma(i)n job, who contr(i)bute on a voluntary or mandatory bas(i)s to job-related statutory soc(i)al secur(i)ty (i)nsurance.
- ((i)(i)) Percentage of contr(i)but(i)ng fam(i)ly workers, respect(i)vely, w(i)th an (i)nformal or a formal ma(i)n job, who contr(i)bute on a voluntary or mandatory bas(i)s to job-related statutory soc(i)al secur(i)ty (i)nsurance.
- ((i)(i)(i)) Percentage of dependent contractors, respect(i)vely, w(i)th an (i)nformal or a formal ma(i)n job, who contr(i)bute on a voluntary or mandatory bas(i)s to job-related statutory soc(i)al secur(i)ty (i)nsurance.
- ((i)v) Percentage of employees w(i)th a formal ma(i)n job that have effect(i)ve access to employment benef(i)ts such as pa(i)d annual leave and pa(i)d s(i)ck leave or other relevant nat(i)onal employment benef(i)ts.
- (v) Percentage of employees w(i)th an (i)nformal ma(i)n job that have effect(i)ve access to some employment benef(i)ts such as pa(i)d annual leave or pa(i)d s(i)ck leave or other relevant nat(i)onal employment benef(i)ts.
(b) Ind(i)cators to prov(i)de (i)nformat(i)on on work(i)ng cond(i)t(i)ons among workers w(i)th (i)nformal ma(i)n jobs and formal ma(i)n jobs are:
- ((i) ) Monthly and hourly average employment (i)ncome among workers w(i)th (i)nformal ma(i)n jobs and formal ma(i)n jobs, by status (i)n employment.
- ((i)(i)) Percentage of persons w(i)th (i)nformal ma(i)n jobs and formal ma(i)n jobs earn(i)ng less than the def(i)ned benchmarks (for example, the m(i)n(i)mum wage or 50 per cent of the med(i)an wage), by status (i)n employment.
- ((i)(i)(i)) D(i)str(i)but(i)on of employees w(i)th (i)nformal and formal ma(i)n jobs, by type and durat(i)on of employment agreement.
- ((i)v) D(i)str(i)but(i)on of persons w(i)th (i)nformal and formal ma(i)n jobs, by place of work and status (i)n employment.
- (v) D(i)str(i)but(i)on of persons w(i)th (i)nformal and formal ma(i)n jobs, by actual hours worked (hour bands) (i)n ma(i)n job per week and by status (i)n employment.
- (v(i)) Average number of actual hours of work per week (i)n ma(i)n job, by persons w(i)th (i)nformal and formal ma(i)n jobs and by status (i)n employment.
- (v(i)(i)) T(i)me-related under-employment among workers work(i)ng less than a set number of hours w(i)th (i)nformal and formal ma(i)n jobs, by status (i)n employment.
- (v(i)(i)(i)) Percentage of persons w(i)th (i)nformal and formal ma(i)n jobs aff(i)l(i)ated to a un(i)on, a profess(i)onal organ(i)zat(i)on, a workers’ assoc(i)at(i)on or a member-based organ(i)zat(i)on of workers, by status (i)n employment.
- ((i)x) Percentage of employees w(i)th (i)nformal and formal ma(i)n jobs covered by one or more collect(i)ve agreements where appl(i)cable.

131. The set of (i)nd(i)cators (i)n paragraphs 128 and 130 should be prov(i)ded (i)n reference to the ma(i)n job. Depend(i)ng on nat(i)onal needs and object(i)ves, the (i)nd(i)cators can also be appl(i)ed w(i)th (i)nformal and formal secondary jobs as reference. By convent(i)on, the terms “(i)nformal ma(i)n job” and “formal ma(i)n job” may be replaced by the terms “(i)nformal employment” and “formal employment” when produc(i)ng and present(i)ng the (i)nd(i)cators.

132. Spec(i)f(i)c (i)nd(i)cators (i)n relat(i)on to (i)nformal second jobs can be produced for all workers or (i)n relat(i)on to some spec(i)f(i)c type of act(i)v(i)t(i)es l(i)kely to be carr(i)ed out as secondary act(i)v(i)t(i)es, depend(i)ng on feas(i)b(i)l(i)ty and nat(i)onal needs as set out below:

(a) Percentage of persons w(i)th (i)nformal second jobs by status (i)n employment.
(b) Percentage of persons w(i)th (i)nformal ma(i)n job and formal ma(i)n job w(i)th (i)nformal second jobs.

133. To prov(i)de contextual (i)nformat(i)on on the degree of vulnerab(i)l(i)ty w(i)th(i)n households, the (i)nd(i)cators set out below are recommended.

(a) Percentage of persons w(i)th (i)nformal ma(i)n jobs who are l(i)v(i)ng (i)n households w(i)th at least one household member (i)n formal employment.
(b) Percentage of persons w(i)th (i)nformal ma(i)n jobs who are l(i)v(i)ng (i)n households w(i)th at least one household member contr(i)but(i)ng to soc(i)al secur(i)ty.
(c) Percentage of persons w(i)th respect(i)vely (i)nformal and formal ma(i)n jobs who are l(i)v(i)ng (i)n households below the nat(i)onal poverty threshold.
(d) Percentage of persons w(i)th (i)nformal ma(i)n jobs, l(i)v(i)ng (i)n poor households and non-poor households.

Partly (i)nformal product(i)ve act(i)v(i)t(i)es⁵

134. To the extent (i)t (i)s cons(i)dered a nat(i)onal pr(i)or(i)ty to measure partly (i)nformal product(i)ve act(i)v(i)t(i)es (i)n relat(i)on to formal jobs the follow(i)ng (i)nd(i)cators are recommended:

(a) Percentage of employees (i)n a formal ma(i)n job where a part of the pa(i)d hours and earn(i)ngs (i)s not declared for taxat(i)on or mandatory job-related soc(i)al secur(i)ty contr(i)but(i)ons.
(b) Volume or monetary value of partly (i)nformal pa(i)d hours from employees (i)n a formal ma(i)n job.
(c) Percentage of respect(i)vely (i)ndependent workers and dependent contractors (i)n a formal ma(i)n job where part of the(i)r (i)ncome (i)s not declared for taxat(i)on.
(d) Monetary value of partly (i)nformal product(i)ve act(i)v(i)t(i)es carr(i)ed out respect(i)vely by (i)ndependent workers and dependent contractors (i)n relat(i)on to formal ma(i)n jobs.

Essent(i)al categor(i)es of (i)nformal work other than employment⁶

135. In countr(i)es where subs(i)stence foodstuff producers or unpa(i)d tra(i)nees are s(i)gn(i)f(i)cant, countr(i)es are recommended to prov(i)de (i)nformat(i)on about the levels of part(i)c(i)pat(i)on (i)n these essent(i)al categor(i)es of (i)nformal unpa(i)d work as descr(i)bed below.

(a) The number of (i)nformal subs(i)stence foodstuff producers and percentages (i)n relat(i)on to: the sum of persons w(i)th (i)nformal ma(i)n jobs and subs(i)stence foodstuff producers; and ((i)(i)) total employed persons and subs(i)stence foodstuff producers.
(b) The number of (i)nformal unpa(i)d tra(i)nees and percentage (i)n relat(i)on to total unpa(i)d tra(i)nees.
(c) The number of (i)nformal tra(i)nees, pa(i)d and unpa(i)d, and percentage (i)n relat(i)on to total tra(i)nees, pa(i)d and unpa(i)d.

Informal sector⁷

136. The (i)nd(i)cators referr(i)ng to the (i)nformal sector are organ(i)zed around the reference un(i)ts of econom(i)c un(i)ts. They reflect the extent (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(a)) and the compos(i)t(i)on (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(b)) of (i)nformal household un(i)ncorporated market enterpr(i)ses, the exposure to (i)nformal(i)ty (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(c)) and product(i)v(i)ty (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(d)). The recommended (i)nd(i)cators are set out below.

(a) Number and percentage of (i)nformal household un(i)ncorporated market enterpr(i)ses (i)n relat(i)on to the total number of econom(i)c un(i)ts (i)n the (i)nformal and formal sector, by econom(i)c act(i)v(i)ty.
(b) D(i)str(i)but(i)on of (i)nformal household un(i)ncorporated market enterpr(i)ses and formal econom(i)c un(i)ts by econom(i)c un(i)t character(i)st(i)cs and by soc(i)o-demograph(i)c character(i)st(i)cs of the owner or owners.
(c) Percentage of (i)nformal household un(i)ncorporated market enterpr(i)ses (i)n relat(i)on to econom(i)c un(i)t character(i)st(i)cs and by soc(i)o-demograph(i)c character(i)st(i)cs of the owner or owners.
(d) Value added and output (i)n (i)nformal household un(i)ncorporated market enterpr(i)ses compared to formal econom(i)c un(i)ts per worker, by econom(i)c act(i)v(i)ty.

Contr(i)but(i)on of the (i)nformal economy to GDP

137. The types of (i)nd(i)cators cover(i)ng the contr(i)but(i)on of the (i)nformal economy to GDP are organ(i)zed around the reference un(i)ts of econom(i)c un(i)ts and product(i)ve act(i)v(i)t(i)es of persons. They reflect the extent of the (i)nformal product(i)on (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(a)) and the product(i)v(i)ty of econom(i)c un(i)ts (i)n the (i)nformal economy (the d(i)mens(i)on descr(i)bed (i)n paragraph 127(d)). The (i)nd(i)cators produced should cover the follow(i)ng components:

(a) Contr(i)but(i)on of the (i)nformal sector to GDP, by econom(i)c act(i)v(i)ty.
(b) Contr(i)but(i)on of (i)nformal product(i)on (i)n the household own-use product(i)on and commun(i)ty sector w(i)th(i)n the SNA product(i)on boundary to GDP.
(c) The contr(i)but(i)on by (i)nformal employees, formal employees carry(i)ng out partly (i)nformal product(i)ve act(i)v(i)t(i)es and persons carry(i)ng out (i)nformal work other than employment to the product(i)on by econom(i)c un(i)ts (i)n the formal sector.

138. The (i)nd(i)cators (i)ncluded (i)n th(i)s resolut(i)on are supported by the Informal Economy Ind(i)cator Framework, wh(i)ch (i)ncludes add(i)t(i)onal (i)nd(i)cators to further support the nat(i)onal product(i)on of (i)nformal(i)ty stat(i)st(i)cs for analys(i)s and use (i)n pol(i)cymak(i)ng.

D(i)saggregat(i)on and analys(i)s

139. Ind(i)cators should be produced for the overall target populat(i)on and for spec(i)f(i)c categor(i)es of workers or econom(i)c un(i)ts relevant to areas of pol(i)cy concern, such as persons w(i)th d(i)sab(i)l(i)t(i)es, m(i)grant workers, home-based workers, d(i)g(i)tal platform workers, m(i)cro and small econom(i)c un(i)ts or workers and econom(i)c un(i)ts (i)n spec(i)f(i)c sectors. The range of (i)nd(i)cators that can be generated and degree of poss(i)ble d(i)saggregat(i)on w(i)ll depend on the sample des(i)gn of the data source and the stat(i)st(i)cal prec(i)s(i)on of the est(i)mates.

140. When produc(i)ng and analys(i)ng these (i)nd(i)cators, part(i)cular attent(i)on should be pa(i)d to the gendered d(i)mens(i)ons of (i)nformal(i)ty. A h(i)gh demand for gender data calls for the systemat(i)c d(i)saggregat(i)on by sex of all (i)nd(i)cators related to persons and jobs, and all enterpr(i)se-related (i)nd(i)cators related to the owner or owners of the econom(i)c un(i)ts. Further to d(i)saggregat(i)on, the (i)nd(i)cator framework (i)ncludes spec(i)f(i)c gender (i)nd(i)cators, such as the gender pay gap, t(i)me spent on unpa(i)d domest(i)c and care work, and the s(i)tuat(i)on of workers (i)n male or female-dom(i)nated econom(i)c act(i)v(i)t(i)es, occupat(i)ons or places of work. Further gu(i)dance on measur(i)ng (i)nformal(i)ty from a gender perspect(i)ve (i)s ava(i)lable from the ILO through publ(i)shed gu(i)des and techn(i)cal support.

141. Ind(i)cators related to persons and jobs should be d(i)saggregated by sex and by other relevant soc(i)o-econom(i)c character(i)st(i)cs, (i)nclud(i)ng by age, educat(i)onal level, area of res(i)dence (urban or rural) and geograph(i)cal reg(i)on. Ind(i)cators should also be d(i)saggregated by employment-related character(i)st(i)cs, (i)nclud(i)ng status (i)n employment, econom(i)c act(i)v(i)ty, occupat(i)on, place of work, s(i)ze of enterpr(i)se, durat(i)on of the employment agreement and number of hours actually worked (hour bands). Where sample s(i)ze and the representat(i)veness of results allow, (i)t (i)s recommended to have mult(i)ple levels of d(i)saggregat(i)on to h(i)ghl(i)ght (i)ntersect(i)onal(i)ty. The accompany(i)ng (i)nd(i)cator framework prov(i)des more gu(i)dance on recommended d(i)saggregat(i)on.

142. Ind(i)cators related to econom(i)c un(i)ts should be d(i)saggregated by (i)ndustry of econom(i)c act(i)v(i)ty, s(i)ze of enterpr(i)se (number of employees and bus(i)ness owners), level of output or sales, level of output or of value added per worker, level of prof(i)ts and place of work. They should also be d(i)saggregated by the soc(i)o-demograph(i)c character(i)st(i)cs of the owner or owners, (i)nclud(i)ng sex, age, educat(i)onal level, area of res(i)dence (urban or rural) and geograph(i)cal reg(i)on, as relevant (i)n the country. The accompany(i)ng (i)nd(i)cator framework prov(i)des more gu(i)dance on recommended d(i)saggregat(i)on.

^ Ava(i)lable on the ILO webs(i)te
^ Ind(i)cators relat(i)ng to structural factors are not def(i)ned (i)n the resolut(i)on as these refer to the (i)nd(i)cators def(i)ned (i)n the latest stat(i)st(i)cal standards on work, employment and work relat(i)onsh(i)ps.
^ As def(i)ned (i)n paras 56–63.
^ As def(i)ned (i)n paras 22–27.
^ As def(i)ned (i)n paras 92–96.
^ As def(i)ned (i)n paras 109–113.
^ As def(i)ned (i)n para. 26(b)