ILO conducts training targeting 3 Caribbean countries on the extension of social coverage to the informal economy

Poverty, youth unemployment and challenges faced by workers and business in the informal economy (IE) were already serious problems facing the Caribbean, which are likely to increase further due to recent multiple challenges to the region. The informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours as well as lack of access to information, markets, finance, training and technology. The root causes of informality include elements related to the economic context, the legal, regulatory and policy frameworks.

The social security coverage for workers and business in difficult-to-cover groups is low in the Caribbean. Lack of social protection coverage in the informal economy is characterized by the exclusion from legal coverage, costs and inadequate financing arrangements, complex and burdensome administrative procedures, a lack of enforcement and control, a lack of information, awareness and trust, as well a lack of coordination, representation and organization.

Against this backdrop, the Sustainable Development Goals (SDG) Fund Joint Programme (JP) entitled “Resilient Caribbean: Engaging & Training Youth, Strengthening Integrated SP Sector Delivery” includes an outcome to provide support for workers in the informal economy (particularly young workers) to access a package of incentives that facilitates access to social security coverage and supports the transition to formal employment. The JP is being implemented by UNICEF, ILO, WFP and UNESCO in Anguilla, Grenada, Saint Kitts and Nevis and The British Virgin Islands.

Hosted by the Social Security Board of Anguilla, the ILO Decent Work Team and Office for the Caribbean, in cooperation with the ILO Training Centre, organized a training on the Extension of Social Coverage to the Informal Economy, during 22-24 September 2022. The training was attended by 15 participants representing the Social Security Board of Anguilla, the Social Security Board of The British Virgin Islands and the National Insurance Scheme of Grenada.

The training focused on the definition and measurement of the IE, the challenges to extend social security coverage to the IE, administrative improvements to extend coverage, identification of target groups and strategic approaches to extend coverage. The training was highly participatory and the participants from each country consolidated the knowledge acquired in a national action plan to extend coverage to the IE in each of their respective countries.

Each plan of action will now be reviewed and discussed with the Directors of each social security organization to identify priority actions that could be supported by the SDG Fund JP until the end of 2023. It is expected that the right incentives are identified and operationalized in each jurisdiction to allow workers in the IE, notably the self-employed, to register with social security institutions and gain access to protection and other public policies and programmes that would support the operations of their businesses.