Urban Informal Employment Share 2020

India

In 2020, India held a global rank of #4 with an Urban Informal Employment Share of 89.31%. This figure is significantly higher than the global average, highlighting the prevalence of informal work in urban areas compared to many other nations. Key drivers include a large population engaged in agriculture transitioning to cities, coupled with insufficient formal job creation to absorb this workforce. Additionally, regulatory challenges and a lack of social security benefits contribute to the persistence of informal employment in India.

Croatia

In 2020, Croatia ranked #60 globally with an Urban Informal Employment Share of 1.62%. This figure is notably higher than the top-ranked country, which typically exhibits a negligible informal employment rate. The relatively low share of informal employment in Croatia can be attributed to its robust labor regulations and a relatively high level of social security benefits, which encourage formal employment over informal arrangements.

Hungary

In 2020, Hungary ranked #64 globally with an Urban Informal Employment Share of 1.31 %. This figure is notably low compared to the global average, indicating a relatively stable formal labor market. Factors contributing to this low share include Hungary's robust labor regulations and economic policies that emphasize formal employment, alongside a well-developed social security system that may discourage informal work.

Belgium

In 2020, Belgium ranked #65 globally with an Urban Informal Employment Share of 1.26 %. This figure is relatively low compared to many developing countries, indicating a more structured labor market. Key factors contributing to this statistic include Belgium's strong social security system and labor regulations, which encourage formal employment over informal work.

Italy

In 2020, Italy ranked #44 with an Urban Informal Employment Share of 4.38 %. This figure is relatively low compared to countries like India, which has a significantly higher share of informal employment. Contributing factors to Italy's statistic include its strong labor regulations and social security systems, which provide a safety net that discourages informal work, alongside a challenging economic environment that may limit job creation in the formal sector.

Ireland

In 2020, Ireland ranked #61 globally with an Urban Informal Employment Share of 1.62 %. This figure is relatively low compared to some neighboring countries, reflecting a more formalized labor market. Key drivers include Ireland's robust economic growth and strong regulatory framework, which encourage formal employment practices and limit the prevalence of informal work.

Costa Rica

Costa Rica ranked #29 globally with an Urban Informal Employment Share of 40.02% in 2020. This figure is notably higher than the global average, indicating a significant portion of the workforce engaged in informal sectors. Contributing factors include a relatively high unemployment rate and economic reliance on tourism, which often leads to informal job arrangements. Additionally, demographic trends, such as a youthful population entering the job market, further exacerbate the informal employment landscape.

Sri Lanka

Sri Lanka ranked #13 globally with an Urban Informal Employment Share of 66.95% in 2020. This figure is significantly higher than the global average, reflecting a widespread reliance on informal work in the country.

The high rate of informal employment in Sri Lanka is driven by factors such as economic instability, limited access to formal job opportunities, and a large rural population migrating to urban areas in search of work. Additionally, the lack of robust labor regulations and support systems contributes to the persistence of informal employment in urban settings.

Chile

In 2020, Chile ranked #34 globally with an Urban Informal Employment Share of 25.83%. This figure is notably higher than the average for Latin America, indicating significant informal labor dynamics in the country. Factors contributing to this high share include economic instability and a lack of sufficient formal job opportunities, particularly in urban areas where many individuals turn to informal work for survival. Additionally, regulatory challenges and limited access to social protections further perpetuate this trend.

Argentina

In 2020, Argentina ranked #26 globally with an Urban Informal Employment Share of 46.98%. This figure is significantly higher than the global average, indicating a substantial reliance on informal labor markets compared to many countries. Key drivers of this high rate include economic instability and high unemployment rates, which push workers into informal sectors as a means of survival.