Both temporary paid work and self-employment are correlated with informal employment, which is itself known to put workers in disadvantaged circumstances (compared to formal workers) in terms of income, hours, safety and protection under the law. Globally, more than one in two workers (57.8 per cent) are still in informal employment in 2024
Temporary paid workers (with a contract duration less than 12 months) now make up about one fifth to one quarter of employment among young adult workers. There has been a shift away from self-employment and into temporary paid employment in nearly all regions and country income groups. Insecure forms of work are the only option for most youth in developing regions.
Temporary employment have risen particularly in East Asia, Latin America and the Caribbean, and South Asia. And young women are more likely than men to work in insecure forms of work except in Eastern Europe where the overall share of young adult workers in temporary work declining.
How the real wages of young adults move in comparison to the adult cohort aged 30 and over also varies across countries. In countries where there is strong demand for entry-level work and a limited supply of job applicants, real wages for the young adult cohort should rise faster than for adults aged 30 and over. This is what is seen in Indonesia, Pakistan, Poland, Türkiye, the United States and Viet Nam, and Mexico in the most recent year. However, in Australia, Brazil, Colombia and Spain, the wage premium lies with the older cohorts, despite the declining youth share of the population, falling youth employment rates and rising education levels.
The persistence of this wage gap (also known as a wage discount) can relate to the over-representation of young workers in part-time and temporary work, in certain types of occupations and/or economic sectors, and in the informal economy.