In the realm of informal employment in Europe, the absence of legal and social safeguards for workers is a pressing concern that demands attention. The existence of zero-hour contracts, also known as informal employment, leaves workers in a vulnerable position, and regrettably, the prevalence of this type of employment remains significant in various European countries.
But what exactly is informal employment? It encompasses work done without a contract, legal protection, or social security, leaving workers susceptible to a myriad of potential hardships. As per the International Labour Organization, a remarkable 58% of the global workforce was involved in informal employment in 2023. Even when excluding agricultural workers, the figure remains startlingly high at 50%.
In Europe, informal employment accounts for 1 in every 5 workers. While this is lower than the global average, it still represents a substantial number of workers in European countries operating under zero-hour or “casual” contracts. According to the International Labour Organization, Hungary and Poland have the highest rates of informal employment among EU countries, at 17.8% and 9.8%, respectively. On the flip side, Malta boasts the lowest informal employment rate at 0.7%, followed by Slovenia at 1%, and Belgium and Bulgaria both at 1.3%.
On the other hand, the UK stands out with an informal employment rate of 6.5%, the highest among Europe’s top five economies. Professor Mihails Hazans points to the fact that “a written contract is not required in the UK” as a contributing factor. He also highlights the gig economy, which heavily relies on flexible, temporary, or freelance jobs that often lack formal contracts.
Professor Hazans’ research uncovered that the UK’s informal employment rate surpasses the International Labour Organization’s estimation. In 2018, the informal employment rate in the UK stood at 8.5%, peaking at 13.3% in 2022, before dropping to 8.9% in 2023.
Professor Hazans emphasizes that social norms, traditions, and legislation have a significant influence on the prevalence of informal contracts across Europe. This underscores the necessity for a more profound understanding of the underlying causes of informal employment and a dedication to finding sustainable solutions.
It’s evident that informal employment is a widespread issue that exposes workers to serious risks. As we strive for a just and secure work environment, it’s crucial to bring attention to the obstacles posed by informal employment and actively work towards meaningful change. Let’s endeavor to provide workers with the legal and social protection they rightfully deserve.
Leave a Reply