DUSHANBE, June 13, 2014, Asia-Plus -- The International Labor Conference (ILC) has completed a first overview of a reality that impacts 40 per cent of the global workforce.

According to press release issued by the International Labor Organization (ILO), delegates to this year’s ILC have concluded that the informal economy represents a major challenge to the world of work and have agreed to hold a second discussion next year with the aim of adopting a Recommendation.

The first discussion that took place at this year’s ILC reportedly made it possible to come up with a first overview of the vast and complex reality of informal work that is severely impacting progress on decent work worldwide.  It is estimated that 40 per cent of the global workforce works in the informal economy.

The conclusions adopted by the Conference on June 11 say that the informal economy is a major challenge for workers’ rights, including access to fundamental principles and rights at work, social protection and decent working conditions, including development and the rule of law.

They also point out that the informal economy has a negative impact on the development of sustainable enterprises, fair competition and government revenues.

The ILC stressed that most people enter the informal economy not by choice, but as a consequence of a lack of opportunities in the formal economy.  Some workers and economic units in the informal economy can have a large entrepreneurial potential if transition to the formal economy is facilitated.

The conclusions also call for ILO Member states to take urgent and appropriate measures to enable the transition from the informal to the formal economy, recognizing both the large diversity of the informal economy and different national contexts.

The ILC also indicated that the term ‘informal economy’ “refers to all economic activities by workers and economic units that are – in law or in practice – not covered or insufficiently covered by formal arrangements and informal work which can be carried out across all the sectors of the economy both in public and private spaces.”

The 104th session of the International Labor Conference will meet in Geneva in May-June 2015.