In response to the global economic crisis, black markets are thriving around the world. Is this a problem?

In Europe, where economic activity is expected to shrink by two percent this year, the "shadow economy," which comprises the untaxed, non-criminal trade of goods and services, could expand by as much as one percent. This means that under-the-table jobs, like gardening or street vending, are rising in popularity. While the expansion of black markets, typical during recessions and wars, speaks poorly of the economy overall, it also enables people on the margins to get by. 

The black market jobs are "one reason that the situation in desperately poor countries isn't as bad as you think," says former chief of the International Monetary Fund, economist Simon Johnson. When workers are laid off, particularly in extremely poor nations like India, informal jobs, free of taxation and paperwork, can provide ways for the unemployed to make ends meet. And for companies who don't want to lose money hiring employees officially, workers under the table can help cut costs. Business Monitor International even suggested that an informal economy kept Russia from political turmoil after a long economic decline in the late 1990's.

Still, these jobs lack regulation and often signify poor treatment of workers. They're also illegal, forcing governments to engage in complicated tax investigations. And because they occur in an underground realm and constitute a significant portion of employment activity, they make economic data even more difficult to gather.

The solution? Making official employment easier and more stable (Although that's probably easier said than done in today's economic climate.) According to Otto Kentzler, president of Germany's Craft Worker's Association, "high taxes and social contributions" are turning skilled workers away from legal work. "To confront the rising informal economy, legal work must become more attractive," he says.