Abstract:
The emergence of the urban informal sector was brought about by the rapid urbanization
process where there was a substantial shift of the labor force from the rural-agricultural
setting to the urban-modem setting. This large labor force could not be instantly
accommodated by the formal labor sector due to its incapability to generate jobs to equal
the rapid pace of urbanization. This situation was further aggravated by the countr/s entry
into the global economy wherein only the foreign investors and foreign exporters benefit.
The globalization process pushes for the liberalization of the world's economies. However,
due to its characteristics of being semi-feudal, semi-colonial, the Philippines is not able to
cope with the demands of globalization. Thus, it resulted to the disintegration of the local
businesses and again, unemployment. The unemployed now turns to the only absorber of
surplus labor 一 the informal sector. Although it only provides subsistence income and offers
no social protection, many still engage in these types of activities because they are left with
no other alternatives.
This study shows the current conditions of the informal sector. It tackles the main issues
confronted by the sector, particularly the street vendors in the specified areas of Padre
Faura and Pedro Gil.
It is a fact that the informal sector of the economy is neglected. The researcher then hopes
to impart the knowledge gained from undertaking this research work as well as provide
information for the development of policies for the development of the sector as well as
further studies regarding this particular sector.
