Core Theme

Transition to Formal Economy

Supporting transitions to the formal economy is necessary to expand access to rights, protections, and economic opportunity.

Why this matters

Transition to Formal Economy

Millions of workers in the informal economy operate without legal recognition, stable incomes, or access to social protections like health care, pension, sick leave or family leave. Expanding pathways to formalization enhances workers’ access to rights, economic opportunity and ability to build a stable livelihood. By working with partners to identify practical solutions, this thematic area helps address systemic barriers so workers can overcome the cycle of vulnerability. Advancing formalization and the enforcement of labor protections strengthens communities and promotes more inclusive adn equitable growth.

Key figures

94%

of the world's informal workers are in developing and emerging countries.

25%

increase in average earnings is seen when workers formalize.

Resources