Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?

Yes, it is necessary to generate employment in the formal sector rather than in the informal sector because: social security benefits are provided in the formal sector like pension, provident fund(PF) and gratuity, etc  workers and enterprises in the formal sector get regular and more income as compared to informal sector. technology used in the formal sector enterprise is updated, therefore, generating employment in formal sector helps in reduction of poverty and income inequalities.