A new report by the International Labour Organisation (ILO) has called for urgent and decisive action to strengthen social protection systems worldwide, warning that millions of workers remain exposed due to gaps in coverage, inadequate benefits, and weak financing in an increasingly volatile global economy.
The report, ‘Universal social protection in changing labour markets: Protecting workers in all types of employment‘, argues that stronger social protection systems are essential to ensure all workers, regardless of their employment status, are shielded from social risks and can adapt to rapid changes in the labour market.
According to the ILO, social protection systems at work are policies, programmes, and employer-provided benefits designed to support workers, manage risks, and ensure income security across their careers. They prevent poverty, improve worker welfare, and cover contingencies like unemployment, sickness, disability, or old age.
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Shahra Razavi, director of the ILO’s Universal Social Protection Department, underscored the urgency of reform, stating, “Strengthening social protection systems is no longer optional; it is essential. We need systems that reach everyone, provide adequate protection, and are financed in a fair and sustainable way. This is the foundation for resilience, social justice, and a just transition in the changing world of work.”
The ILO highlights the need for a systematic expansion of coverage to include all categories of workers, particularly those often left out of formal systems. This includes temporary, part-time, and self-employed workers, as well as those in micro and small enterprises, agriculture, domestic work, and other complex or informal arrangements.
Extending coverage, the report notes, not only improves social and economic outcomes but also supports the transition from informal to formal employment.
From minimal protection to comprehensive systems
Beyond access, the report stresses that benefits must be both adequate and comprehensive to effectively reduce poverty and vulnerability.
It argues that social protection systems should move beyond limited, reactive measures and instead provide consistent support throughout a person’s life. This includes periods such as early childhood, entry into the workforce, parenthood, unemployment, illness or disability, and old age.
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Ensuring sustainable and equitable financing
The report identifies sustainable and fair financing as central to effective social protection. It points to domestic resource mobilisation, including social security contributions and progressive taxation, as key funding sources, supported where necessary by public subsidies for workers with limited ability to contribute.
For countries with weaker fiscal capacity, the report emphasises the continued importance of international support in building resilient systems and responding to crises.
Building resilience for the future of work
Against the backdrop of climate change, technological disruption, and demographic shifts, the ILO notes that strong social protection systems are critical to resilience. They enable workers and businesses to adapt, support transitions to more sustainable economic activities, and strengthen social cohesion.
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