Informality and the quality of employment in G20 countries
G20 Leaders’ goal of more and better jobs requires an integrated set of policies that work at both the macroeconomic and labour market levels. This report reviews trends in informality and the quality of employment and concludes that strategies to facilitate the transition to formality, reduce working poverty, reconnect wage and productivity trends and reduce job insecurity, in particular by addressing labour market segmentation, offer strong potential dividends for meeting the growth and employment goals of the G20, not least by supporting aggregate demand.
For many G20 countries, structural underemployment, informality and qualitative indicators of employment are more significant measures of the challenges they face in achieving inclusive growth and decent employment for all than unemployment rates alone.