WSSD2 Brief
Accelerating the transition to formality for decent work and social justice
This brief explores the widespread challenge of informality in the world of work and its impact on rights, productivity, and social justice. It highlights the need for integrated strategies and strong partnerships to support a sustainable transition to formality.
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Key considerations for WSSD2
- Informality is a key feature and challenge of the world of work. Although the share of workers in the informal economy is declining globally, the numbers continue to grow in absolute terms. Informal employment remains a defining feature of far too many economies and the daily reality of 2 billion workers and 80 per cent of enterprises worldwide.
- The transition of both workers and economic units to the formal economy is essential to advancing social justice, ensuring decent work for all and achieving the UN Sustainable Development Goals (SDGs). Widespread informality presents significant challenges for the realization of workers’ rights and working conditions. It also undermines the rule of law, hinders productivity and has a negative impact on: (i) the development of sustainable enterprises, public revenues and governments’ scope of action; (ii) the soundness of institutions; and (iii) fair competition on national and international markets.
- An integrated and coherent approach based on solid social dialogue institutions and greater representation of those in the informal economy is critical to address informality significantly and sustainably. The Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), is a key guiding instrument. Experience has shown that the following four pillars can be considered prerequisites: (i) good governance and an adequate regulatory framework, combined with political will and commitment; (ii) organization, voice and representation of workers and economic units in the informal economy, and inclusive social dialogue; (iii) an enabling environment for sustainable enterprises to make productive and full employment a reality; and (iv) better working and living conditions through the transition to formality and leaving no one behind.
- Joining forces and developing strategic partnerships within the multilateral system and with international financial institutions. Effective coordination, knowledge sharing and strategic partnerships are crucial to strengthen national capacities to address informality and guarantee adequate and sustainable financing for policies and interventions that support pathways to formality.
Additional details
References
- DOI: doi.org/10.54394/QQFW7511