The most concrete characteristic of a recession is that demand disappears for some of the commodities produced by workers and unwanted unemployment is imposed on a large segment of the labor force. With growing job losses in the current recession it is important to know, whose boat falls when the economic tide recedes?
There are at least three reasons why it has become important for Los Angeles to exert purposeful influence on its own economic trajectory: The population has grown steadily but the number of jobs in the formal economy, where employers comply with labor law, is still below the level of 1990.
What is the informal economy?
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. How can it be measured?