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Informal Labour Market (Labour Markets)

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 21 Mar 2021

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Also known as the “grey” market, shadow economy, or black economy. This is the part of the economy that is not taxed or regulated by government, and therefore does not feature in the GDP statistics for that country.

People working in the informal labour market are likely to be paid in cash, and may undertake work such as domestic cleaning / gardening, babysitting, car-washing and is characterised by unstable employer-employee relationships. Informal work is often vitally important to the poor.

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