ILO Report Highlights Need for Strong Social Security in Changing Job Market

  • A recent report released by the International Labour Organization (ILO), “Universal Social Protection in Changing Labour Markets: Protecting Workers in All Types of Employment” highlights the urgent need to strengthen social protection systems in response to changing labour market realities, including informalisation, gig work, and non-standard employment.

About Social Protection

  • ¨  Social protection (social security) refers to policies and programmes aimed at reducing and preventing poverty and vulnerability across the life cycle.
  •         It includes nine key areas: child and family benefits, maternity protection, unemployment support, employment injury benefits, sickness benefits, health protection, old-age benefits, disability benefits, and survivors’ benefits.

Need for Strengthened Social Protection

  • ¨   Shift from Reduction to Prevention: Systems must evolve from merely reducing poverty to preventing vulnerability, ensuring support before individuals fall into risk.
  •   Adapting to Changing Labour Markets: With the rise of temporary, part-time, self-employed, and informal work, social protection must ensure universal access to adequate and comprehensive benefits.
  •     Expanding Coverage and Inclusion: Extending social insurance to workers in agriculture, domestic work, micro- and small enterprises, and complex employment arrangements improves income security, fairness, and inclusion.
  •     Build Resilience to Crises: Robust social protection systems enhance stability amid climate change, technological disruptions, and demographic shifts (E.g. Pradhan Mantri Fasal Bima Yojana).
  •     Reduce Gender Inequalities: Gender-responsive social protection measures help correct labour market disparities (E.g. Pradhan Mantri Matru Vandana Yojana).

Role of Social Insurance

  • ¨   Enables risk-sharing and redistribution across men and women, higher- and lower-income groups, and workers with continuous or interrupted careers
  •         Helps mitigate gender inequalities in labour markets
  •      Remains a stable financing source, contributing 18.8% of total taxation and 5.7% of GDP globally (2019).
  •     Accounts for over 27% of total taxation in Europe and Central Asia, and remains significant in Africa, Asia and the Pacific despite relatively lower shares.
  •     Continues to play a key role even with challenges in extending coverage to the informal economy.

Key Concern

  • ¨   The report underscores that existing social protection systems are insufficient to address the realities of modern labour markets, characterised by informal employment, gig work, and diverse employment arrangements.
  •     Without reform, large sections of workers remain exposed to social and economic risks.