Migration and livelihoods

Migration often expands the reach of informal economies. People moving between regions or countries frequently rely on informal work to cover immediate expenses, access housing, or send remittances. These activities can include temporary trading, casual construction work, or cross-border services that adapt to local demand and restrictions.

Informal livelihoods associated with migration interact with policy and social networks. Newcomers may lack official documentation and face barriers to formal jobs, so social capital, language skills and informal referral networks become crucial for securing income and basic services.

Housing and economic survival

Housing insecurity and unaffordable rents push many households into informal income generation. Home-based enterprises, shared housing arrangements and informal subletting are common coping strategies that blur the boundary between shelter and work.

The location and quality of housing shape access to markets and services; proximity to transit, marketplaces and local services influences what kinds of informal work are feasible. Poor housing conditions can increase vulnerability to shocks, affecting both earnings and health.

Gender, inequality and access

Gender strongly influences participation in informal economies and the types of work available. Women disproportionately engage in care, domestic, and small-scale retail activities, often juggling unpaid household responsibilities alongside paid informal work.

Inequality is reinforced when social norms, caregiving duties and limited access to credit or land restrict opportunities. Addressing gendered barriers—through targeted inclusion measures and support for childcare or flexible work arrangements—can change the distribution of risks and earnings.

Digital inclusion and informal income

Digital tools are reshaping informal livelihoods by opening new markets and streamlining transactions. Mobile payments, online marketplaces and social media marketing help informal sellers reach broader customers and reduce reliance on cash.

However, digital inclusion is uneven. Lack of access to devices, limited digital skills and costs of connectivity can exclude many workers. Closing these gaps improves resilience, but it also requires attention to privacy, platform fees and the informal regulation of online marketplaces.

Mental health and resilience

Informal work often involves irregular hours, unpredictable incomes and limited social protections, all of which can affect mental health. Stress from financial volatility, housing insecurity or migration-related separation can reduce well-being and productivity.

Community-based supports, peer networks and accessible mental health services can strengthen resilience. Civic engagement and local organizations frequently play a role in building coping mechanisms and collective responses to shared risks.

Climate, aging and inclusion

Climate-related shocks—flooding, heat events or crop failure—disrupt informal supply chains and local markets, pushing workers to diversify livelihoods or migrate. Older adults who rely on informal income face distinct risks when physical demands or weather extremes affect their ability to work.

Inclusion for aging populations involves tailored protections, access to local services and designing public spaces that support continued participation. Integrating climate adaptation with social policies can reduce exposure and support long-term livelihood stability.

Conclusion Informal economies are complex systems shaped by migration, housing conditions, gender norms, digital access and environmental change. Policies and programs that aim to support livelihoods should consider the diverse needs of workers, including mental health supports, civic engagement opportunities and measures to reduce inequality. Viewing informal work through interconnected lenses—resilience, inclusion and access to services—offers a clearer basis for informed, equitable responses.