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This paper looks at the informal sector in the Palestinian economy during a very unstable period. The Palestinian National Authority (PNA) has placed a high priority on technical and vocational education and training (TVET) and has developed a national TVET strategy, with the non-formal training sector constituting an important part of the strategy. It aims at providing the labour market with skilled and semi-skilled workers in a variety of economic sectors and providing training for adults who need to upgrade their skills. Training for work in the informal sector is also very important. It is suggested that in the Palestinian situation, training for work in the informal sector should be broadly conceived to apply to any organised transfer of knowledge or skills which people use in earning an income.