| KILM 8: Employment in the informal economy |
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8.1 Employment in the informal economy and its components as percentage of non-agricultural employment
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Introduction and Background
Summary of formal/informal employment in formal/informal sector
 The KILM 8 indicator is a measure of employment in the informal sector as a percentage of total non-agricultural employment.
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| a) | Formal sector:
Formal sector is an
enterprise/business that is officially registered and kept a record of
book of accounts (assets and expenditures).
Examples: People working in civil service, government service, etc |
| b) | Informal sector:
Informal sector is an
enterprise/business that is not officially registered and do not kept a
record of book of accounts (assets and expenditures).
Example: online unregistered business. |
c)
| Formal employment:
Formal employment are the
people who work to receive a regular wage and assured certain rights
Example: paid annual leave, paid sick leave. |
| d) | Informal employment:
Informal employment
refers to jobs as observation units as opposed to the concept of
informal sector that refers to production units as observation units. It
is broader concept including: |
| i) | employment in the informal sector (except those rare employees in the sector who may have formal employment), and
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| | ii) | informal employment outside the informal sector |
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