INFORMAL EMPLOYMENT IN UZBEKISTAN AND ITS ECONOMIC CONSEQUENCES

Abstract

This article analyzes the nature, scope and main forms of informal employment in the labor market of Uzbekistan. The multifaceted consequences of informal employment on the country's economy are highlighted - a decrease in tax revenues, disruptions in the social protection system, and the impact on labor productivity and investment attractiveness. Based on statistical data and reports of international organizations, the level of informal employment is assessed and its main determinants are identified. In particular, as of January 2024, 39 percent of the total employed population in Uzbekistan, or about 5.5 million people, work in the informal sector. The analysis shows that, although informal employment alleviates the employment problem in the short term, it hinders sustainable economic growth in the long term. The article concludes with a set of proposals aimed at legalizing informal employment, improving tax administration, and encouraging entrepreneurship.