The unintended effect of Indian complex labour laws is the work has shifted to the unorganised, informal sector. As a result, after the unorganised agriculture sector which employs 60% of child labour, it is the unorganised trade, unorganised assembly and unorganised retail work that is the largest employer of child labour. If macroeconomic factors and laws prevent growth of formal sector, the family owned informal sector grows, deploying low cost, easy to hire, easy to dismiss labour in form of child labour. Even in situations where children are going to school, claim Biggeri and Mehrotra, children engage in routine after-school home-based manufacturing and economic activity. Other scholars too suggest that inflexibility and structure of India's labour market, size of informal economy, inability of industries to scale up and lack of modern manufacturing technologies are major macroeconomic factors affecting demand and acceptability of child labour.
