EMPLOYMENT IN THE INFORMAL SECTOR IN NIGERIA: IMPLICATIONS FOR SUSTAINABLE ECONOMIC DEVELOPMENT

Abstract

The problem of employment has become a central global concern in recent times. This makesthe government and development partners to be fully engaged in finding a lasting solution tothe problems. In the past, development planning efforts were concentrated on the developmentof modern industrial sector. Today, there is renewed interest in the informal economyworldwide. This is because a large share of the global workforce and economy is informal andbecause the informal sector is growing in many contexts and appearing in new places andguises. The informal sector serves as a buffer against unemployment in times of economicdownturn, allowing an increasing share of the population to earn a livelihood from the sectorrather than stay openly unemployed with no income. The sector has also played a key role incushioning the adverse impact of economic crises. The paper therefore interrogated the natureof employment in the informal sector and is anchored on Modernisation theory. This paper isbased on a desk and literature review of relevant articles and publications as well as onemployment and the informal sector. The paper revealed that Nigerian Informal Sector is amajor contributor to the Nigerian economy, accounting for a significant portion of employmentand national Gross Domestic Product and also the informal sector currently accounts for overhalf of global employment and as much as 90% of employment in some of the developingcountries like Nigeria. The paper therefore recommends that efforts should be made by thegovernment and its agencies to create more jobs. Secondly, policies should be introduced toaddress identified challenges in the informal sector towards improving productivity andincomes of informal sector workers.