Employment in the informal sector refers all persons who, during a given reference period, were employed in at least one informal sector enterprise, irrespective of their status in employment and whether it was their main or a secondary job. An informal sector enterprise satisfies the following criteria:

  • It is an unincorporated enterprise, which means that:
    • It is not constituted as a legal entity separate from its owners, and
    • It is owned and controlled by one or more members of one or more households, and
    • It is not a quasi-corporation (it does not have a complete set of accounts, including balance sheets);
  • It is a market enterprise: this means that it sells at least some of the goods or services it produces. It therefore excludes households employing paid domestic workers;
  • And at least one of the following criteria:
    • The number of persons engaged / employees / employees employed on a continuous basis, is below a threshold determined by the country
    • The enterprise is not registered
    • The employees of the enterprise are not registered.

For more information, refer to the Resolution concerning statistics of employment in the informal sector.

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