Informal sector
Also called: Unorganised sector · Topic: Geographical Issues: Pollution, Urban Waste, Slums and Land Degradation · NCERT: Class 12, Ch 9 "Geographical Perspective on Selected Issues and Problems"
Meaning
The informal sector is the part of the economy made up of small, unregistered businesses and casual work. Workers here have no job security and no social protection such as pension, health cover or paid leave. Most poor, unskilled migrants from villages find work in this sector, and so do many slum dwellers. Their jobs are often low-paid and risky.
Example
Ramesh, a migrant from Odisha, began on ₹20 a day in a woollen factory in Ludhiana in 1988. He later learnt welding in Surat and moved from one contract job to another across Gujarat, Mumbai and Talcher, all without a permanent job.
Don't confuse with
- Formal (organised) sector: registered firms and government jobs with written contracts, fixed wages and social security.