Advocacy Tool for Extension of Social Protection in the Informal Economy

The informal economy comprises more than half of the global labour force and more than 90%
of Micro and Small Enterprises (MSEs) worldwide. Informality is an important characteristic of
labour markets in the world with millions of economic units operating and hundreds of millions of
workers pursuing their livelihoods in conditions of informality.

The expression “informal economy” encompasses a huge diversity of situations and phenomena.
Indeed, the informal economy manifests itself in a variety of forms across and within economies.
The formalization process and measures aiming to facilitate transitions to formality need to be
tailored to specific circumstances that different countries and categories of economic units or
workers face.