This article examines the economic nature of informal employment and the key factors influencing its formation. The study highlights the role of informal employment in maintaining labor market equme generation, and its negative consequences, particularly the weakening of the social protection system and the decline in tax revenues. In addition, the causes of informal employment are systematically analyzed based on economic, institutional, demographic, and social factors. The findings suggest that rather than reducing informal employment, it is necessary to ensure its gradual integration into the formal sector