Final answer:
Unregulated service refers to work that functions outside official regulatory systems, often within the 'underground economy,' which lacks tax obligations, permits, or standard labor protections. This sector comprises a significant part of nonagricultural employment in regions like Latin America, Asia, and Africa.
Step-by-step explanation:
An Unregulated service refers to a type of work or service that operates outside the official regulatory framework that typically governs employment, taxes, and professional licensing. The individuals who perform these services do not have the permits, protection, or oversight that are standard in a formal economy. For example, a driver of an unlicensed cab in New York, a piecework seamstress in Mumbai, and a street tortilla vendor in Mexico City are all part of the underground economy. This economic sector is characterized by the absence of formal registration with governmental authorities, lack of tax contributions, and frequently ignores standard labor protections.
The underground economy represents a significant portion of economic activity in various regions around the world. Before the worldwide recession, official statistics indicated that this sector accounted for over 50 percent of nonagricultural work in Latin America, and rates were even higher in parts of Asia and Africa. These unregulated services are part of utilitarian organizations that focus primarily on the pragmatic goal of providing goods and services without governmental interaction or oversight.