What does urban informality refer to?

Urban informality refers to economic activities that operate outside official regulations. This concept encompasses various sectors and practices, such as street vending, informal labor, and unregistered small businesses, where participants may not adhere to legal frameworks, taxation norms, or safety regulations.

Understanding urban informality is essential because it highlights how many individuals navigate economic challenges, often relying on these unregulated spaces to generate income and livelihood amidst formal sector limitations. The existence of informal economies can reflect broader socio-economic dynamics, including poverty, urban migration, and the need for flexible job opportunities.

It’s important to differentiate urban informality from formal systems established by government bodies or regulations, as those represent structured economic and social frameworks. The nature of informal activities often lacks the security and benefits associated with formal contracts or recognized public services, which highlights the precariousness of many individuals engaged in such practices.