The informal economy includes jobs that are not regulated by government standards, such as casual labour, piece-rate work (a type of gig work), or jobs within households. It does not have any written rules or agreements. It exists merely on verbal understanding. Moreover, it does not have fixed wages or fixed hours of work and mostly relies on daily earnings. Often the work atmosphere is unorganised, congested and unhygienic. Labour market discrimination often forces many people into informal jobs. Women, in particular, tend to work in the most disadvantaged parts of the informal economy.
Women’s access to jobs, resources, and education is often limited by their socio-cultural backgrounds. In India, many women work in the informal sector, doing casual or piece-rate work, often within their households. For example, some women do tailoring work gigs for others. This kind of work is not always reflected in official statistics, meaning these women miss out on social protection and security benefits. On top of that, the instability of informal work can limit their ability to provide consistent support for their families.
Women in the informal economy generally earn less than their male counterparts, even when performing similar tasks. This wage gap is partly due to the undervaluation of traditionally female-dominated jobs. Moreover, Informal jobs often involve unsafe or unhealthy working environments. On top of that, women in the informal economy often juggle work with family responsibilities, which can affect their mental health and their children’s well-being and education.
Women in the informal economy often have limited representation in labour unions or advocacy groups. This lack of representation means their specific needs and concerns may not be effectively voiced or addressed in policy discussions. By acknowledging and analysing the condition of women in the informal economy, policies can be better designed to improve the conditions for women in the informal economy and support their economic empowerment.
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