Employment puzzle

The informal sector is not creating enough jobs

The recently published factsheet on the Annual Survey of Unincorporated Sector Enterprises (ASUSE), by the Ministry of Statistics and Programme Implementation, for 2021-22 and 2022-23, paints a sobering picture of the employment situation in the country. Despite showing resilience after the pandemic, the unincorporated sector has not generated significant employment. The sector, encompassing small businesses and sole proprietorships across manufacturing, services, and trade, represents the informal segment of the economy. Workers and enterprises in this segment typically lack formal recognition and are usually excluded from social-security schemes. However, the segment plays a key role in value chains