Supporting the real economy and formalising the informal economy are necessary to retain employment and rebuild livelihoods

Support for employment and livelihoods should continue to reverse the economic and social consequences of the crisis, until the pandemic is defeated. Economic stimulus targeting micro-, small- and medium-sized enterprises will ensure they are sustained, along with contributing to employment retention and extending social protection coverage to informal economy workers. Informal economy workers are being hit especially hard by this crisis. Their jobs and livelihoods are under constant threat, and they lack the necessary social protection to fall back on. Governments must take concrete steps towards formalising the informal economy, such as by implementing the International Labour Organization’s Recommendation 204 on the transition from the informal to the formal economy.

Supporting micro-, small- and medium-sized enterprises to ensure employment retention and the formalisation of the informal economy is necessary if we are to emerge from this crisis.