The informal economy refers to economic activities that are not regulated by the government or covered by formal labor laws. This includes jobs and businesses that operate without official registration, such as street vendors, unregistered small businesses, and casual labor. Workers in the informal economy often lack benefits like health insurance and retirement plans. Many people participate in the informal economy due to a lack of opportunities in the formal sector. It can provide essential income for individuals and families, especially in developing countries. However, it also poses challenges, such as job insecurity and limited access to resources and support from the government.