page_title: Slum
section_title: Unemployment and informal economy
hierarchical_section_title: Slum / Problems / Unemployment and informal economy
context_page_description: A slum is usually a highly populated urban residential area consisting mostly of closely packed, decrepit housing units in a situation of deteriorated or incomplete infrastructure, inhabited primarily by impoverished persons. Although slums, especially in America, are usually located in urban areas, in other countries they can be located in suburban areas where housing quality is low and living conditions are poor. While slums differ in size and other characteristics, most lack reliable sanitation services, supply of clean water, reliable electricity, law enforcement, and other basic services. Slum residences vary from shanty houses to professionally built dwellings which, because of poor-quality construction and/or lack of basic maintenance, have deteriorated.
  Due to increasing urbanization of the general populace, slums became common in the 18th to late 20th centuries in the United States and Europe. Slums are still predominantly found in urban regions of developing countries, but are also still found in developed economies.
  According to UN-Habitat, around 33% of the urban population in the developing world in 2012, or about 863 million people, lived in slums.
context_section_description: Due to lack of skills and education as well as competitive job markets, many slum dwellers face high rates of unemployment. The limit of job opportunities causes many of them to employ themselves in the informal economy, inside the slum or in developed urban areas near the slum. This can sometimes be licit informal economy or illicit informal economy without working contract or any social security. Some of them are seeking jobs at the same time and some of those will eventually find jobs in formal economies after gaining some professional skills in informal sectors.
  Examples of licit informal economy include street vending, household enterprises, product assembly and packaging, making garlands and embroideries, domestic work, shoe polishing or repair, driving tuk-tuk or manual rickshaws, construction workers or manually driven logistics, and handicrafts production. In some slums, people sort and recycle trash of different kinds (from household garbage to electronics) for a living – selling either the odd usable goods or stripping broken goods for parts or raw materials. Typically these licit informal economies require the poor to regularly pay a bribe to local police and government officials.
  Examples of illicit informal economy include illegal substance and weapons trafficking, drug or moonshine/changaa production, prostitution and gambling – all sources of risks to the individual, families and society. Recent reports reflecting illicit informal economies include drug trade and distribution in Brazil's favelas, production of fake goods in the colonías of Tijuana, smuggling in katchi abadis and slums of Karachi, or production of synthetic drugs in the townships of Johannesburg.
  The slum-dwellers in informal economies run many risks. The informal sector, by its very nature, means income insecurity and lack of social mobility. There is also absence of legal contracts, protection of labor rights, regulations and bargaining power in informal employments.
caption: A propaganda poster linking slum to violence, used by US Housing Authority in the 1940s. City governments in the USA created many such  propaganda posters and launched a media campaign to gain citizen support for slum clearance and planned public housing.[161]
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