ILO report spotlights innovative approaches to tackle informality in Asia and the Pacific

BANGKOK (ILO News) - A new report from the International Labour Organization (ILO) highlights a wide range of innovations taking place to tackle informality across Asia and the Pacific.

Innovative approaches to formalization in Asia and the Pacific showcases initiatives ranging from state-of-the-art use of technology to community-based approaches to protect workers in the informal economy. It also presents approaches to encourage formalization among vulnerable groups of workers, such as migrant workers and domestic workers.

Despite some progress over the past two decades, informality remains persistently high in Asia and the Pacific. As of 2024, approximately 66 percent of all employment in the region was informal, accounting for 1.3 billion workers—almost two-thirds of the global informal workforce.

The report recognizes the growing potential of digitalization to support formalization in the region. Many countries, including Viet Nam, India and Mongolia, are deploying e-formalization platforms and mobile-based systems to simplify business registration, expand social protection and reach previously unregistered workers. These tools lower administrative burdens and foster inclusion in national systems.

A number of successful country-level initiatives are detailed such as Cambodia’s National Strategy for Informal Economy Development 2023–2028, Nepal’s National Action Plan on Formalization and Thailand’s expanded protections for domestic workers. These efforts demonstrate that tailored, context-specific policies—particularly those that take an integrated approach—can yield significant progress.

The research report also draws insights from a Tripartite Regional Knowledge Forum held in Bangkok, Thailand in November 2024 that brought together governments, employers and workers representatives, experts and civil society from across the region to discuss lessons learned, share best practices and identify innovative approaches to help accelerate the transition to formality in line with ILO’s Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

Speaking on the urgency of accelerating progress, Steven Tobin, Economist at the ILO’s Regional Office for Asia and the Pacific and lead author of the report said, “Tackling informality is one of the most pressing challenges facing our region, with profound implications for equity, resilience and sustainable development. The Regional Knowledge Forum provided a vital platform for governments, employers and workers to come together, share experiences and chart a path forward. The upcoming International Labour Conference to be held in Geneva in June 2025 will be an opportune time to build on these exchanges as we work collectively to turn innovative ideas into lasting solutions.”

The report and related Forum are one in a series that have taken place under the auspices of the Priority Action Programme on Transition to Formality that was established in 2023 to address key policy challenges and opportunities in promoting social justice and decent work through addressing informality and supporting transition from the informal to the formal economy.