Informal Economy - GCSE Geography Definition

The informal economy refers to all the jobs and businesses that are not monitored or regulated by the government. This means they do not pay taxes, follow the laws about working or have any rights for workers. Examples can include street vendors, small family-run farms, or people offering services like haircuts or repairs from their homes. While these activities help people earn money and support their families, workers in the informal economy often miss out on benefits like job security, health care, and pensions. This part of the economy is important in many countries, especially in developing regions.