The informal sector refers to economic activities that are not regulated by the government or covered by formal labor laws. This includes jobs like street vending, casual labor, and small-scale home businesses. Workers in this sector often lack job security, benefits, and legal protections, making their income unstable. Many people turn to the informal sector due to limited opportunities in the formal economy. It plays a significant role in providing livelihoods, especially in developing countries, where it can account for a large portion of employment. However, the lack of regulation can lead to exploitation and inadequate working conditions.