ILO report urges stronger social protection amid labour market changes

ISLAMABAD: A new report by the International Labour Organisation has called for a major strengthening of social protection systems around the world, warning that shortcomings in coverage, benefit adequacy and financing are leaving millions of workers exposed in an increasingly uncertain global economy.

The report, titled Universal social protection in changing labour markets: Protecting workers in all types of employment, says stronger social protection is necessary to ensure workers in every form of employment are safeguarded against social risks and are able to cope with major shifts in labour markets.

Released on Friday, the report says one of its main conclusions is that stronger social protection depends on financing systems that are both sustainable and fair. It identifies domestic resource mobilisation as central to this effort, including social security contributions and progressive taxation, while noting that public subsidies may also be needed to bring in workers who have limited ability to contribute.

Such an approach supports risk-sharing, redistribution and the long-term sustainability of social protection systems.

The ILO also said international solidarity remains important for countries that do not have sufficient fiscal space, particularly to help them build social protection systems and prepare for or respond to crises.

Coverage gaps remain a major concern

The report calls for a systematic widening of social protection coverage to address persistent gaps, saying all workers should be covered adequately, including those in temporary, part-time and self-employed roles.

It points to examples from different countries where social insurance coverage has been expanded to groups of workers that often remain outside protection frameworks. These include workers in micro- and small enterprises, agriculture, domestic work, complex employment arrangements and self-employment.

The report says ensuring adequate protection across all forms of employment serves both social and economic goals and can also support the shift from the informal economy to the formal economy.

Need for better benefits

Beyond expanding coverage, the report stresses the need to improve the adequacy and comprehensiveness of benefits so they can more effectively prevent poverty and reduce vulnerability.

The findings come as labour markets in many parts of the world continue to undergo significant change, increasing pressure on governments and institutions to ensure workers are protected regardless of the type of job they hold.

The ILO report underscores that stronger systems of social protection are not only necessary for workers facing changing employment conditions, but also for building more resilient and inclusive labour markets over the long term.