Transition from the informal to the formal economy

Transcription

1 Transition from the informal to the formal economy Employment policies By Mohammed Mwamadzingo, ACTRAV Geneva

2 Outline Employment in the informal economy: facts and figures ILO Recommendation 204 on Employment Policies ILO Convention 122 on National Employment Policies Group activity Turin, Italy September

3 Employment in the informal economy in numbers Facts and figures Approximately 2.5 billion people (half of the global workforce) are employed in the informal economy. Informal economy accounts for 91% of SMEs. Turin, Italy September

4 Employment in the informal economy in numbers Facts and figures Size of the informal economy by region: South Asia 82% Sub-Saharan Africa 66% East and South-East Asia (excluding China) 65% Latin America 51% Eastern Europe and Central Asia 10% Turin, Italy September

5 Employment in the informal economy in numbers Facts and figures Vast intra-regional disparities: Latin America: Uruguay 40%; Bolivia 75% Sub-Saharan Africa: South Africa 33%; Mali 82% Southern and Eastern Asia (excluding China): Thailand 42%; India 84% Middle East and North Africa: Turkey 31%; West Bank and Gaza 59% Turin, Italy September

6 Informal economy in numbers Facts and figures Gender considerations Sub-Saharan Africa: Women 74%; Men 61% Latin America and the Caribbean: Women 54%; Men 48% South Asia: Women 83%; Men 82% Urban China: Women 36%; Men 30% Turin, Italy September

7 Facts and figures Employment in the informal economy in numbers Informal economy is not a developing country phenomenon 18.4% of GDP in 2014 in the European Union (EU-27) 8.6% in Australia, Canada, Japan, New Zealand, and USA Turin, Italy September

8 Employment in the informal economy in numbers: Africa persons employed Facts and figures Turin, Italy September

9 ILO R204 on Employment Policies Recommendation concerning the Transition from the Informal to the Formal Economy, adopted by the Conference at its 104 th session, Geneva, 12 June 2015 The new labour standard provides strategies and practical guidance on policies and measures that can facilitate the transition from the informal to the formal economy Turin, Italy September

10 ILO R204 on Employment Policies Preamble Recalling that decent work deficits the denial of rights at work, the absence of sufficient opportunities for quality employment, inadequate social protection and the absence of social dialogue are most pronounced in the informal economy. Turin, Italy September

11 ILO R204 on Employment Policies Objectives and scope (b) promote the creation, preservation and sustainability of enterprises and decent jobs in the formal economy and the coherence of macroeconomic, employment, social protection and other social policies Turin, Italy September

12 ILO R204 on Employment Policies Section IV: Employment policies Members should formulate and implement a national employment policy in line with the Employment Policy Convention, 1964 (No. 122), and make full, decent, productive and freely chosen employment a central goal in their national development and growth strategy or plan. Turin, Italy September

13 ILO R204 on Employment Policies Section IV: Employment policies Members should promote the implementation of a comprehensive employment policy framework, based on tripartite consultations Turin, Italy September

14 ILO R204 on Employment Policies Section IV: Employment policies Elements include: pro-employment macroeconomic policies trade, industrial, tax, sectoral and infrastructure policies enterprise policies labour market policies and institutions labour migration policies education and skills development policies activation measures measures to promote the transition from unemployment or inactivity to work labour market information systems Turin, Italy September

15 ILO R204 on Employment Policies Section V: Rights and social protection Respect, promote and realize the fundamental principles and rights at work for those in the informal economy, including (d) the elimination of discrimination in respect of employment and occupation. Turin, Italy September

16 ILO R204 on Employment Policies Section VI: Incentives, compliance and enforcement Ensure recognition and enforcement of employment relationships, so as to facilitate the transition to the formal economy. Turin, Italy September

17 ILO C122 on National Employment Policies Employment Policy Convention, 1964 (No. 122): Date of entry into force: 15 Jul ratifications Turin, Italy September

18 ILO C122 on National Employment Policies 111 ratifications (19 countries represented at the Academy, out of 26 countries) Albania (2009); Algeria (1969); Brazil (1969); Cambodia (1971); Dominican Republic (2001); El Salvador (1995); Guinea (1966); Jamaica (1975); Jordan (1966); Lebanon (1977); Madagascar (1966); Mali (2016); Mauritania (1971); Peru (1967); Philippines (1976); Sudan (1970); Tunisia (1966); Venezuela (1982); Zambia (1979) Turin, Italy September

19 ILO C122 on National Employment Policies Preamble: Declaration of Philadelphia: "all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity" The Universal Declaration of Human Rights: "everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment" Turin, Italy September

20 ILO C122 on National Employment Policies Article 1: Major goal: an active policy designed to promote full, productive and freely chosen employment. Purposes: - stimulate economic growth and development, - raise levels of living, - meet manpower requirements, and - overcome unemployment and underemployment. Turin, Italy September

21 ILO C122 on National Employment Policies Article 1: Aims: (a) there is work for all who are available for and seeking work; (b) such work is as productive as possible; (c) there is freedom of choice of employment and the fullest possible opportunity for each worker to qualify for, and to use his skills and endowments in, a job for which he is well suited, irrespective of race, colour, sex, religion, political opinion, national extraction or social origin. Turin, Italy September

22 ILO C122 on National Employment Policies Article 1: 3. The said policy shall take due account of the stage and level of economic development and the mutual relationships between employment objectives and other economic and social objectives, and shall be pursued by methods that are appropriate to national conditions and practices. Turin, Italy September

23 ILO C122 on National Employment Policies Article 3: Representatives of employers and workers shall be consulted concerning employment policies. Turin, Italy September

24 Transition from the informal to the formal economy Employment policies Thank you

25 Group Activity on Employment Policies Wednesday, 7 September 2016 Tasks Identify the three main trade union concerns in the ILO Recommendation 204 with respect to employment policies. How can trade unions address these concerns? Use examples and case studies in your country Turin, Italy September