- Low Wages: Due to lower productivity and lack of formalization.
- No Social Security: Workers often lack benefits like PF, pension, insurance.
- Stagnant Skills: Workers unable to upgrade skills, stuck in same tasks.
- Poverty: Hinders overall progress and keeps workers destitute.
- Inequality: Contributes to income inequality.
- Exploitation: Workers are vulnerable to exploitation.
- Hindrance to Inclusive Growth: Prevents poor from being brought into formal employment.
- Reduced Tax Base: Operates outside the tax net, reducing government revenue.