Shadow employment grows with the economy

by time news

The number of Russians employed in the informal sector approached 15 million people in the second quarter of 2021, which is 11.5%, or 1.5 million people, more than in the same period last year. In May of this year, informal employment reached a record 15.45 million people in two years. This is stated in a study by the analytical service of the international audit and consulting network FinExpertiza based on Rosstat data.

According to the official methodology, workers in the informal sector are those employed by individuals or workers in an enterprise that is not registered as a legal entity. We are talking about self-employed, individual entrepreneurs (individual entrepreneurs; both registered and not) and their employees, employees of family businesses without legal entity status. These can be tutors, nannies, drivers, cooks, builders and any specialists, including the highest qualifications, for example, doctors, lawyers and engineers, if they work outside the corporate segment. The informal sector is not identical to the shadow economy. These businesses do not necessarily involve intentional tax evasion or other irregularities. At the same time, in the informal sector, labor relations can either be formalized or not.

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