The Dangers of Informal Employment: A Look at the Vulnerability of Workers in Europe

Imagine a world where workers are left vulnerable and exposed, with no safety net to catch them if they fall. This is the reality of informal employment in Europe. It’s like walking a tightrope without any legal or social protection, a precarious position that can lead to a multitude of problems for those who dare to take on these kinds of jobs.

In 2023, the International Labour Organisation revealed that a staggering 58% of the global workforce is engaged in informal employment. Even when we exclude agricultural workers, that number remains at a significant 50%.

In Europe, approximately 1 in 5 workers find themselves in informal employment, a number that, while lower than the global average, still represents a substantial portion of the workforce. Hungary and Poland take the lead in informal employment rates among EU countries, with a startling 17.8% and 9.8%, respectively. On the other hand, countries such as Malta, Slovenia, Belgium, and Bulgaria keep their informal employment rates below a mere 2%. Meanwhile, Spain’s informal employment rate hovers at 2.6%.

And the situation in the UK is even more concerning. In 2018, their informal employment rate hit a staggering 6.5%, the highest among Europe’s top five economies. This lack of written contracts has opened the floodgates for informal work, especially with the rise of the gig economy, where individuals take on flexible, temporary, or freelance jobs without any formal agreements.

According to Professor Mihails Hazans from the University of Latvia, the UK’s informal employment rate is even higher than what the International Labour Organisation estimates. In 2018, it was 8.5%, then spiked to 13.3% in 2022 before dropping to 8.9% in 2023.

So, what’s driving these disparities in informal employment across Europe? Professor Hazans points the finger at social norms, traditions, and legislation, all factors that significantly influence the rates of informal contracts across the continent.

Informal employment may seem inconsequential at first glance, but it’s leaving countless hardworking individuals without the legal and social protection they deserve. It’s time to shine a light on this issue and work towards a solution. After all, no one should have to navigate the world of work without a safety net to catch them when they fall.