IMRS analyzes impact of informal employment on Uzbek economy

The situation of informal employment in Uzbekistan was analyzed. This was reported by the Institute of Macroeconomic and Territorial Studies.

According to the Ministry of Poverty Alleviation and Employment, the total economically active population in 2022 was 14.98 million people in Uzbekistan. A total of 13.7 million people are employed, and 6.5 million of them (47 percent) are in the formal sector.

The economically active population includes those employed and unemployed in the economy. This does not include students, those on statutory leave with childcare and those who do not work at their own will.

In terms of types of economic activity, the largest share belongs to agriculture, forestry and fishing (34%), 14% to trade, 14% to construction and 11% to industry.

It is noted that the size of the informal sector makes it difficult for governments to effectively implement economic policies and regulate the economy.

If it is assumed that employees in the informal sector receive the same salary as employees in the formal sector. In 2022 alone, more than 9 million people were employed in the informal sector which caused 32.9 trln soums of tax evasion.

The fund could be used for:

• To build 4,100 general education schools;
• Construction of 3,737 outpatient medical facilities;