There is extensive evidence of a growing informal labor force in Los Angeles City and County, along with stagnant employment in the formal labor market. Between 2000 and 2004, the working age population in the county grew by 4.9 percent, but the number of wage and salary jobs (i.e.,
The informal economy produces legal goods and services that are not effectively regulated. Such activities can give rise to abuses by employers who fail to respect basic labor, safety, immigration, and tax laws, leaving workers without rights. By definition the informal economy is hidden "under the table" and "off the books." However, by comparing different sources of employment data we can identify industries where a significant share of jobs appear to be unreported. Industry characteristics such as worker demographics can also be used as an additional indicator of informal employment.
The loss of a welfare safety net for most adults for most of their lives makes the quality of jobs available to the working poor and their success in finding and keeping jobs increasingly important. The economic and civic life of the Los Angeles region will be shaped by connections that are made, or fail to be made, between the growing ranks of working poor and opportunities for steady, sustaining, productive employment.