Statistics on the informal economy

Recognizing that there is informality in all countries (regardless of their level of income and development), in economic units of the informal sector as well as the formal sector, and in households, the new standards provide operational definitions of the formal sector, the informal sector, and the household own-use and community sector based on the formal status of the economic unit and the intended destination of the production. They also introduce the concept of “informal productive activities” designating all productive activities carried out by persons or economic units that are – in law or in practice – not covered by formal arrangements, recognizing that productive activities can be “partly” informal. In short, the informal economy includes all informal productive activities of persons and economic units.

A key feature of the 21st ICLS resolution is the introduction of an informal economy indicator framework which aims to support policy development and monitoring, research, and analysis. To simplify  the use of this indicator framework, the ILO has created an Indicator Selection Tool (available in beta version).