Study on the measurement of the informal and informal employment in Africa

Abstract

The ability of decision-makers being to articulate and implement well informed policies concerning the informal sector require that they have data and evidence about the multifaceted realities of this sector and that they get such information in time in order to be able to monitor the situation regularly. However, owing to a lack of information on the informal sector, the Gross Domestic Product (GDP) and overall employment are underestimated, thereby limiting government understanding of issues such as social coverage, access to credit, and the remuneration differential between formal and informal employment. This is a matter of particular concern for statisticians as their role is to ensure that no part of the economy is forgotten. Several attempts have been made over the years to rectify this perceived shortcoming. For instance, many surveys on the informal sector have been conducted successfully over the past 15 years by National Statistical Offices (NSOs) of African countries in partnership with regional statistical institutions.