Informal economy in the Philippines

Empowerment training for rural women in Pampanga, Philippines (@ILO/A. Ganal).

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The informal economy consists of independent, self-employed small-scale producers and distributors of goods and services. Workers in this sector are for the most part not covered by the country’s labour laws and regulations.  Proxy measurement and related indicators for the informal economy include the vulnerable employment rate, defined as the share of own-account and contributing family workers in total employment.

In the Philippines, the Labor Force Survey data indicated that 38.3 per cent of those employed are in vulnerable forms of employment. This means nearly two out of five workers are less likely to have formal work arrangements and access to social protection and are more at risk during a crisis or shock.

The ILO Country Office for the Philippines (CO-Manila) has carried out research and programmes to better understand informal work. Initially focused on productive and job-creating potentials, the office has begun to emphasize quality of employment issues including access to social security and improvement of working conditions. The office works with specific categories of workers in the informal economy specifically through the ongoing Assessment Based National Dialogue (ABND) towards establishing a Social Protection Floor as well as the Domestic Workers project, in order to strategically support the growing sector, enhance their role as contributors to the economy and provide such workers with the legitimacy and protection accorded other types of workers.

For further information please contact:

ILO Country Office for the Philippines (CO-Manila)
19th Floor, Yuchengco Tower
RCBC Plaza 6819 Ayala Avenue
1200 Makati City, Philippines

Tel: +632 8580 9900