The informal sector
Information from Focus Geography Grade 12
The concept of informal sector employment and its
characteristics
The informal sector involves people who have had to find work for themselves, sometimes
illegally, on the streets or in their home kitchens or workshops.
Characteristics of the informal sector
The informal sector has the following characteristics:
• Workers are self-employed.
• Women and children are mainly involved in this sector.
• It is associated with casual labour.
• It employs unskilled or semi-skilled workers.
Importance of the informal sector
The informal sector benefits the economy and people in the following ways:
• It provides an income to many people and decreases unemployment.
• Informal traders are more accessible to working class consumers.
• Consumers can buy goods in smaller quantities and at a lower price.
• It provides opportunities for people to grow and apply their entrepreneurial skills.
Information from Focus Geography Grade 12
The concept of informal sector employment and its
characteristics
The informal sector involves people who have had to find work for themselves, sometimes
illegally, on the streets or in their home kitchens or workshops.
Characteristics of the informal sector
The informal sector has the following characteristics:
• Workers are self-employed.
• Women and children are mainly involved in this sector.
• It is associated with casual labour.
• It employs unskilled or semi-skilled workers.
Importance of the informal sector
The informal sector benefits the economy and people in the following ways:
• It provides an income to many people and decreases unemployment.
• Informal traders are more accessible to working class consumers.
• Consumers can buy goods in smaller quantities and at a lower price.
• It provides opportunities for people to grow and apply their entrepreneurial skills.
