Informalisation of workforce :
Employment sector broadly divided into
(i) Formal sector employment and
(ii) Informal sector employment
Informalisation of workforce is defined as a situation where percentage of workforce in the formal sector tends to decline and that in the informal sector tends to rise.
In India estimates reveal that nearly $92\%$ of workers are involved in informal employment and remaining $8\%$ in formal employment. According to some economists that increase in the informalisalion is a result of the reforms of 1991 which transformed India from 'socialist' economy to a 'market' economy.