Answer:
Here are four common challenges experienced by individuals working in the informal sector:
Lack of Social Protection: One major challenge for those in informal jobs is the absence of social protection mechanisms. Many informal workers cannot access formal social security benefits, such as healthcare, retirement plans, unemployment benefits, or disability insurance. This problem exposes them to economic shocks, health emergencies, and other unforeseen circumstances.
Limited Job Security and Income Instability: Informal workers often face risky employment conditions, with irregular income streams and little security. They may secure seasonal or temporary work, or rely on day-to-day or piece-rate earnings. This undermines their ability to plan for the future, secure loans or credit, and meet basic needs consistently.
Limited Access to Rights and Services: Informal workers may struggle to access their basic rights and services. They often operate outside the formal legal framework, which can result in exploitation, lack of legal protections, and inadequate working conditions. They may face challenges in enforcing labor rights, accessing healthcare, education, and other essential services. Discrimination, harassment, and unsafe working environments are also common concerns.
Limited Skills Development and Upward Mobility: Informal work often restricts opportunities for skills development and upward mobility. Many informal jobs require low levels of education and skill specialization, limiting prospects for career advancement and higher wages. Informal workers may face barriers in accessing training, education, and skill-building programs that could improve their qualifications and income potential
Step-by-step explanation: