Informal economy

A term used by the ILO mostly in relation to the developing world, which covers all economic activities by workers and economic units that are – in law or in practice – not covered or insufficiently covered by formal arrangements.This definition is very similar in its scope to the definition of undeclared work as understood in the context of the Platform, but reflecting the developing world contexts where it is used, tends to also include workers who sometimes fall outside the coverage of labour legislation (e.g. unpaid, domestic or agricultural workers).

[Statistical Definition of informal employment: guidelines endorsed by the Seventeenth International Conference of Labour Statisticians (2003). Internet: http://ilo.org/public/english/bureau/stat/download/papers/def.pdf]

[Labour inspection and undeclared work in the EU / International Labour Office, Labour Administration and Inspection Programme (LAB/ADMIN). - Geneva: ILO, 2013 Working document, No. 29, ISSN 2227-7560]