The Disadvantages Of Informal Employment

The disadvantages of informal employment

Introduction

It is defined as formal employment to those who are within the legal norms of the State, under a contract, and who enjoys the benefits granted to them, and in turn comply with tax payments, benefits, etc., And consequently, informal employment would be the one that lacks a contract, which is outside the norms of the State and its obligations that this concerns. With respect to informality in Peru, it can be said that it is too much and there are many causes that exist in relation to it, one of them is that there are too high costs to become formal and be the framework ofState norms.

Developing

 The benefits provided by the Government are not of quality and this shines for its absence, since the controls are weak. The low educational level also increases informality because labor productivity is reduced, the standards become less flexible and decreases the benefits that formality can grant you, the lack of awareness of citizens also, it is taken into account that informality isover the insufficiency that exists in the legal system, acts of corruption in the tax system, as well as in the excessive young and rural population also increases informality.

Therefore, the State is difficult to monitor and manage this problem. On the other hand, the great importance of formal employment is for example;The benefits that this provides your workers (health insurance, bonuses, vacations, compensation for extra times, among others), the income generated to the country’s GDP, since this generates greater development as well as more tools when eradicatingPoverty, the greatest productivity generated by mypes considering that while companies have more production workers will have more benefits, and there will be more consumption and this generates economic growth.

 Meanwhile, mining is one of the primary activities that generates the most GDP (12%), at the same time contribute approximately 60% in exports, but on the other hand there is also illegal mining, which as it generates largeIncome also generates great problems to the country that affect several areas such as health (toxic waste that generates damage to food and consequently to the population), environmental (thousands of talled trees, swamps, lagoons, destroyed rivers, shattered biodiversity) biodiversity), social (child exploitation, human trafficking) and economic (reduction in tax collection, does not receive mining canon and therefore does not pay right of validity, among others).

conclusion

In equal importance, informal production is another big problem for Peru, since it generates a large amount of income to GDP (millions of soles), and it becomes much more difficult to fight because much of the country you rose day by day in informality. Meanwhile, informality repercussions are the decrease in economic growth and productivity of companies, the reduction of the tax base in the country, social and economic progress slows, favors poverty, the capacity for investment for development by development byThe State is reduced, social (child exploitation, people trafficking) and economic.