Informality shapes the lives of billions of workers and their families across developing countries. It is often marked by income insecurity, limited social protection and restricted access to job opportunities, especially for the poorest workers. As the world works towards the Sustainable Development Goals (SDGs), improving the livelihoods of informal workers remains a major challenge. Despite important progress in terms of formalisation, the pace of change and its benefits remain insufficient to meet global commitments by 2030.
This report provides a detailed analysis of the informal economy in developing countries. Using data from the OECD Key Indicators of Informality based on Individuals and their Households (KIIbIH), it highlights the diversity of situations within the informal economy. It examines how major global trends, including population ageing, automation and environmental degradation, are reshaping the risks and opportunities faced by informal workers.
The analysis helps inform policy proposals aimed at reducing vulnerabilities and improving livelihoods in the informal economy, with a focus on stronger social contracts, formal job creation, locally led approaches and greater policy coherence.
