The Pros and Cons of Being Informally Employed: A Personal Perspective
Being informally employed pertains to individuals who engage in income-generating activities that are not recognized by the government or formal sectors. They are often called freelancers, self-employed, or those who work in the gig economy. While the number of informally employed individuals continues to rise in many parts of the world, the question remains: is it a wise choice to start working informally? Here, we will explore the pros and cons of being informally employed based on a personal point of view.
Pros
1. Greater Flexibility
One of the most significant advantages of being informally employed is having greater control over your schedule. With no formal contract or specific hours to work, it’s easier to balance work and personal life. It also means you can choose projects that align with your interests and cater to your strengths. This creates a more natural work-life balance, and individuals can put more effort where it’s needed.
2. More Working Freedom
Because there are no specific work hours to follow, informal workers have more freedom to choose their working environment. Some prefer to work remotely, while others may choose to work from co-working spaces or cafes. This freedom allows people to design their workplace in a way that is comfortable for them and helps them be more productive.
Cons
1. Lack of Job Security
One of the biggest risks of working informally is the lack of job security. Individuals may have multiple clients and projects, but none of them are guaranteed or long-term. This can be especially daunting for those who rely solely on informal employment for income. It’s essential to remember that no job is entirely secure, but it’s important to evaluate the risk associated with informally employed work.
2. No Benefits or Protections
Typically, informal workers do not receive employee benefits or work-related protections such as sick leave or insurance. It’s important to account for these inadequacies when planning for the future. Individuals have to create their safety nets such as setting up individual health or retirement plans, paying self-employment taxes, or creating a rainy day fund.
Conclusion
Informal employment can be a good fit for some people, while others may find it too unpredictable and unstable. It’s a personal choice, but there are pros and cons to weigh when deciding. While it provides flexibility and personal freedom, job security and lack of benefits can be challenging areas to navigate. Individuals must assess their situation and take informed decisions before taking the leap into informal employment.
