Informality from our point of view

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(Photo: 2020Noticias.com)

Informality is something that has been going on for years, we often think it's just related to work, but informality can be also found in buildings, ways of leaving and every single thing that surrounds us.

Informality is all around the world, according to ILO (2018), “Two billion people – more than 61 percent of the world’s employed population – make their living in the informal economy, stressing that a transition to the formal economy is a condition to realize decent work for all.”

This means more than half of the population in the world doesn't have insurance, a basic salary and all the benefits of working in a formal job.

Workers in the informal economy are typically less competent and less productive. As a result, workers in the formal economy earn around 19% more than workers in the informal market.

Most of the time, people working in the informal do seek formal work but companies ask for a lot of things for them to apply for a job, and they find it easier to keep working this way. The amount of education has a significant impact on the level of informality. According to the survey, as education levels rise, so does the amount of informality. People with a secondary or higher degree are less likely to be in informal employment than employees with no education or only an elementary education. Informality comes from education, someone that went to high school, or university and has a degree most times work in a formal type of work, and people who didn't have the opportunity to attend school, just search for a job that helps them live and have a modest type of life.

People in rural regions are about twice as likely as those in metropolitan areas to be in informal work. Agriculture has the largest proportion of informal employment, believed to be more than 90%.

In third-world countries, informality is something that affects most of the people living there, for example in Peru.

In 2020, informal work accounted for 68 percent of the total employed population in Peru. This indicates that more than two-thirds of Peruvian employees were classified as unemployed. Despite a reduction from the previous year, Peru remains one of the Latin American countries with the greatest level of informal employment.

We can see in the streets people selling all kinds of stuff and they don't have the permission of municipalities to do it, but they need to earn money to give their children basic needs such as education, food and a place to live. So, informality is a bad thing and it should stop, but it is also a side effect of a bad government and lack of education.

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