Formal employment

Definition

Registered and regulated work in which earnings and business activity are subject to taxation.

Used by Edexcel

Specification 5.6 · Paper 2

TNC-led formal employment has grown particularly in core regions, so workers and places outside these areas may gain less. Meanwhile, demand for low-paid, low-skilled services has increased informal employment. Such work can provide an income, but workers may lack employment benefits and it does not directly generate tax revenue in the same way as registered employment.
Revise: Economic Sectors and Investment Changes

Paper 1

Official, regulated work in which earnings are declared for tax and workers have legal protection.

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If migration increases faster than formal employment, newcomers may have to find informal work to earn a living.

Employment within the regulated economy, normally involving recognised contracts, taxation and legal employment protections.