May 2018 - What is the role of social protection in the informal market?

Welcome to the May socialprotection.org newsletter dedicated to informal work!

Workers in the formal economy are accustomed to a regular income, health insurance, unemployment benefits, and a pension when they retire. For workers in the informal economy, unemployment, illness, maternity, or retirement can result in their families falling into poverty.

The challenges informal workers encounter is staggering, considering the informal economy comprises more than half of the global labour force and more than 90% of Micro and Small Enterprises (MSEs) worldwide (ILO, 2018). Ensuring the sustainable livelihoods of informal workers is therefore a pressing issue demanding government attention, despite operating beyond the purview of taxation or national gross domestic product (GDP).

Extending social protection to informal workers has important social and economic implications when one accounts for their role in the economy and the level of risk they encounter. For example, access to health care can secure their participation in the informal market, while unemployment and maternity benefits can improve resilience to temporary loss of income.

Social protection is increasingly playing a key role in securing the livelihoods of informal workers around the world. This month’s newsletter highlights the challenges of the informal economy, while showcasing examples of social protection being extended to informal workers. Enjoy reading!

• Social insurance: Going beyond the basics
• Social protection and the Changing Labour Market: Finding the Missing Links
• How can Social Protection Programmes Protect Women’s Right to Work?

• How Can Social Protection Programmes Protect Women’s Right to Work? (29 March 2018) or check out the corresponding blog article.
• Social protection and the Changing Labour Market: Finding the Missing Links (27 March 2018) or check out the corresponding blog article.
• PROSPERA Social Inclusion Program Mexico: The role of evaluation (12 October 2017) or check out the corresponding blog article.

• FADAMA targets 12,000 households for cash-for-work programme
• Brazil boosts benefits paid under flagship social program
• What are we learning about the impacts of public works programs on employment and violence in fragile states?