Labour Informality Among Professionals with Higher Education in Guayaquil Causes and Effects

Abstract

In Guayaquil, professionals with higher education face challenges accessing formal employment. Labour informality limits income stability and social protection. Key causes include economic instability and a mismatch between education and market needs. The objective of the Study is to analyse labour informality in people with higher education in the city of Guayaquil. A descriptive, mixed-method study was conducted. Surveys were applied to 384 professionals working informally, and interviews were conducted with three human resources experts. The research used non-experimental, cross-sectional design. Data were analysed using descriptive statistics and qualitative content analysis. Validity and reliability were ensured through expert review and internal consistency. The results shows that 75.1% of professionals surveyed work informally. Most are aged 20–29 and earn $301–$400 per month, despite holding university degrees. Flexibility (85.3%) and low entry barriers (81.7%) are the main advantages of informality, while lack of social security (59.7%) and job instability are major disadvantages. Many respondents (53.2%) pursue further education to improve employability. Key obstacles to formal employment include corruption (35.1%), a saturated job market, and lack of experience. This study highlights that higher education alone does not ensure access to formal employment in Guayaquil. It sheds light on a neglected segment of informal workers—professionals—offering practical recommendations for training, policy reform, and entrepreneurship support. It contributes to academic discourse on the mismatch between education and labour market outcomes. Labour informality among educated professionals is a structural issue in Guayaquil. Despite their qualifications, many faces precarious conditions due to market saturation, insufficient experience, and limited formal opportunities. Bridging this gap requires coordinated efforts from educational institutions, government, and the private sector. Promoting formal entrepreneurship and digital skills training is essential to improve employment quality and ensure sustainable development.