A new report released by the International Labour Organization (ILO) calls for strong social protection systems for all type of workers.
The report, Universal social protection in changing labour markets: Protecting workers in all types of employment emphasises that reinforcing social protection systems is essential to ensure that all workers, across all types of employment are protected against social risks and able to navigate profound labour market transformations.
Social protection, or social security, is defined as the set of policies and programmes designed to reduce and prevent poverty and vulnerability across the life cycle. Social protection includes nine main areas — child and family benefits, maternity protection, unemployment support, employment injury benefits, sickness benefits, health protection, old-age benefits, disability benefits and survivors’ benefits.
Social protection systems must evolve from merely reducing poverty to actively preventing it, ensuring that individuals are supported before they fall into vulnerability. In a rapidly changing world of work, marked by diverse and often insecure forms of employment, strengthening these systems has become an urgent priority. To remain effective, social protection must adapt to labour market realities and guarantee universal access to adequate and comprehensive benefits for all workers, including those in temporary, part-time, and self-employed roles.
The report highlights encouraging examples from various countries where social insurance has been extended to previously excluded groups, such as workers in agriculture, domestic work, micro- and small enterprises, and complex employment arrangements. Expanding coverage in this way not only improves income security but also promotes fairness and inclusion. Contributory social insurance systems are particularly valuable because they enable risk-sharing and redistribution across different groups, including between men and women, higher- and lower-income earners, and workers with continuous or interrupted careers.
The report also points that social protection systems hold the potential to mitigate and offset gender inequalities found in labour markets and employment.
Social security contributions continue to play a key role in financing social security and in total government revenue. Globally, social security contributions accounted for 18.8 per cent of total taxation or 5.7 per cent of GDP in 2019. Social security contributions in Europe and Central Asia represent more than 27 per cent of total taxation. In Africa, Asia and the Pacific, where they are relatively less important, they still make significant contributions to government revenue. Despite persistent coverage gaps and challenges in extending social insurance to those currently in the informal economy, social insurance contributions have remained a stable source of financing for social protection systems.
The social insurance coverage is particularly important for women, as it provides a much greater policy space and potential for broad risk-sharing, redistribution and measures to offset gender inequalities in the labour market.
Finally, in light of challenges such as climate change, technological transformation, and demographic shifts, the report underscores the critical role of robust social protection systems in fostering resilience and stability.
Social protection systems are key in protecting people and economies from shocks and stresses, and promoting social and economic development, says the report.