Overview of the informal economy in the European Union

Source: ILO Women in the informal economy 2016 & ILO updates on specific issues

1 Share and composition of informal employment*, by sex (%) Share and composition of informal employment, total (%) 2

Men Women Total ‐‐ in the informal

Informal employment (%), of which: 17,9 15,4 16,8 sector
‐‐ in the informal sector 13,7 11,3 12,6
‐‐ in the formal sector 4,2 4,2 4,2
Informal 12,8%
employment:
‐‐ in households … … …
16,8%

Informal employment, excluding agriculture 15,7 13,3 14,6 Formal ‐‐ in the formal
‐‐ in the informal sector 11,4 9,0 10,3 employment; sector
‐‐ in the formal sector 4,3 4,3 4,3 83,2%
‐‐ in households … … … 4,0%

Estimates of informal employment follow the ILO harmonized definition and ILO estimates may differ from national estimates.
For more details, see: Women and men in the informal economy: A statistical picture (Third edition) .

3 Composition of informal employment: What is the prevalent form of informality in the country?

‐‐ in the Independent workers — IE | IS Shares in total informal employment of: T M W

informal Independent workers — IE | IS 52,5 60,9 40,8
1,4 sector Employees — IE | IS
Employees — IE | IS 17,8 14,1 23,1
22,2 Contributing family — IE | IS Contributing family — IE | IS 6,0 3,5 9,5
‐‐ in the Employees — IE | FS 22,2 20,5 24,5
Employees — IE | FS
formal sector Contributing family — IE | FS 1,4 1,0 2,0
6,0 52,5 Independents — IE | Households … … …
Contributing family — IE | FS
Employees — IE | Househols … … …
Independents — IE | Households Contributing family — IE | Households … … …
17,8
‐‐ in Employees — IE | Househols Total 100,0 100,0 99,9
households
Contributing family — EI | Households Note: IE= Informal Employment; IS = Informal Sector; EI = formal
Employment; FS = Formal Sector

4 Distribution of informal & formal employment by employment status (%) Informal employment depending on employment status (%) 5

Formal 95 23 16,8 Total (Reference)

Informal 48 8 33 11

Employees Employers 100,0 Contributing family

Own‐account
Own‐account workers Contributing family workers 68,4 workers

Formal 91 4 5 42,0 Employers

Informal 31 15 50 5 8,2 Employees

% informal employment
0 20 40 of informal
Distribution 60and formal employment
80 100

6 Share of informal employment by education level (%) Distribution of informal employment by level of education (%) 7
60
Formal 04 61 35 None
% informal employment

Informal 0 8 69 23 Primary
40
Secondary
Formal 04 63 32
31 Tertiary
32 Total Informal 0 11 73 16
20 Other
18 Formal 03 68 38
12
Informal 0 12 78 10
Employees
0 0 20 40 60 80 100
None Primary Secondary Tertiary
Distribution of informal and formal employment
Comments & Questions Informality | Country factsheet
8 Share of informal employment depending on age group (%) Working time and informal employment 9

Informal 5 16 54 22 4 Very

Total
100
short Less than 20 h
Formal 5 13 71 10 2
80 Short
% informal employment

Total hours 20‐34 h

Men
Informal 2 10 54 29

6
60 51,9 "Normal
Formal 2 5 14
hours" 35‐48h
77

2
40 30,2
Employees
Long
49‐60h

Women
18,3 16,9 hours
20
14,8 14,5 Informal 8 24 53 13

2
Very
Formal 8 23 63 51 long 60h and more
0 hours
15‐24

25‐29

30‐34

35‐54

55‐64

65+

Composition (%)

10 Distribution of informal & formal employment by enterprise size (%) Share of informal employment and size of enterpirises (%) 11
100

% FORMAL employment
90

24% Own‐account 80 % formal

5% 70 employment
34%
20% 60
2‐9 persons
50
47%
Informal Formal employment
40
employment 10‐49 persons 30
16% 28%
20 Total (formal
10
employment)
50+
26% 0
Own‐account 2‐9 persons 10‐49 persons 50+

12 The sectoral dimension: The 10 sectors the most represented in the informal economy Monthly median wage compared to monthly wage 13
of MEN in FORMAL Wage employment
Public Admin. 6,0 Reference
Accomodation & food 6,2 | Men Formal wage
Construction 6,4 employment
1
Education 6,7 100%
0,8
Transport & communication 6,9
0,6
Art & other services 7,4 0,4
Health & social work 9,0 0,2
Real estate 9,6 Women in Informal Women in Formal
wage employment 56% 0 74%wage employment
Manufacturing 11,2
Wholesale, retail trade 13,1
Agriculture 15,7

Representation of sector X in total informal employment 71%

Men in Informal wage
14 The impact of COVID‐19 pandemic on the informal economy employment
Sectors most represented among informal workers
Proportion of informal economy workers significantly impacted significantly impacted by the crisis
100 High risk sectors: Wholesale and retail High
trade, repair of motor vehicles,
motorcycles; Manufacturing;
Risk
Accommodation and food services; Real Women
estate; business and administrative 20,8 Medium‐
activities. high Risk
6,3 Men
Medium‐high risk sectors: Arts, 8,3
%

entertainment and recreation, domestic

42 workers, and other services; Transport, Medium
7,9 17,9
storage and communication. 48,9 51,9 Risk
Medium‐Risk sectors: Construction; 3,5
19 17 19 16 13 19 6
11 13 15 12 Financial and insurance services; Mining 17,6 Low‐
0 and quarrying.
Total High Risk Medium‐high Medium Risk Low‐medium Low Risk 15,9 medium
Low‐Medium risk sector: Agriculture,
Risk Risk forestry and fishing. Risk
Total employment Low‐risk sectors: Human health and social Low Risk
Levels of risk depending on
Total informal employment work activities; Education; Utilities; Public
sectors* administration.
Significantly impacted informal