Transitioning from the informal to the formal economy
Transitioning from the informal to the formal economy
The International Labour Organization is the tripartite U.N. agency that promotes Decent Work through employment, social security, labour standards and social dialogue. Its work on skills development is guided by the conceptual framework on Skills to improve productivity, employment growth, and development agreed in 2008 by representatives of Governments, Employers’ Associations and Workers’ Associations. Research, policy advice, and pilot projects and technical cooperation programmes to apply good practices in different circumstances across its 185 member States aims to boost the employability of workers, the productivity and competitiveness of enterprises, and the inclusiveness of economic growth. The ILO Secretariat in offices in 40 countries works with Ministries of Labour, employers’ organizations, and trade unions to integrate skills development into national and sector development strategies in order to better meet current labour market needs and to prepare for the jobs of the future; to expand access to employment-related training so that youth, persons with disabilities and other vulnerable groups are better able to acquire skills and secure productive and decent work; and to improve the ability of public employment services to provide career guidance, maintain labour exchange services, and deliver active labour market programmes.For more information regarding the ILO’s work on skills and employability go to: http://www.ilo.org/skills/lang--en/index.htm; for ILO/Cinterfor's Knowledge Management Plarform, see: http://www.oitcinterfor.org
There is a critical need for a greater overall investment in education and training, particularly in developing countries. Education and training investments should be closely linked to economic and employment growth strategies and programmes. Responsibility should be shared between the government (primary responsibility), enterprises, the social partners, and the individual. To make lifelong learning for all a reality, countries will need to make major reforms of their vocational and education and training systems. School-to-work schemes for young people should integrate education with workplace learning. Training systems need to become more flexible and responsive to rapidly changing skill requirements. Reforms should also focus on how learning can be facilitated, not just on training for specific occupational categories.
Skills and employment policies should be viewed together. The full value of one policy set is realized when it supports the objectives of the other. For investments in education and training to yield maximum benefit to workers, enterprises, and economies, countries’ capacities for coordination is critical in three areas: connecting basic education to technical training and then to market entry; ensuring continuous communication between employers and training providers so that training meets the needs and aspirations of workers and enterprises, and integrating skills development policies with industrial, investment, trade, technology, environmental, rural and local development policies.
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skills-policies-and-strategies
Working papers, reports, and other publications from international organizations, academic institutions and bilateral agencies. Research findings to stimulate informed debate on skills, employment and productivity issues.
Fifth item on the agenda - International Labour Conference, 103rd Session, 2014
The report provides an overview of the informal economy, its impact on the attainment of decent work for all workers and employers, and the International Labour Organisation's approach to the transition to formality, as set out in the 2002 Conclusions. It covers the regulatory environment relating to the informal economy at national and international levels, with examples of existing laws and practices from different regions, legal systems, traditions and circumstances adopted by ILO constituents to move progressively to the formal economy; more recently, skills development in the informal economy has increasingly been considered a strategic element in increasing the employability of workers and the productivity of enterprises, alleviating poverty and using new skills to help workers move into decent formal work. The report also examines the need for an integrated policy framework, encompassing the ILO’s four strategic objectives (fundamental principles and rights at work, employment, social protection and social dialogue) adapted to the national context of each Member State for a progressive transition to the formal economy and decent work.
