Executive Summary
Youth and informal workers constitute a significant proportion of the global workforce, particularly in low- and middle-income countries. Despite their critical contribution to local economies, these groups often face precarious employment, low and unstable incomes, lack of social protection, limited access to skills development, and vulnerability to economic shocks. The informal economy absorbs millions of young people and marginalized workers who are unable to secure formal employment, yet it frequently perpetuates cycles of poverty and exclusion.
This proposal seeks funding to implement a comprehensive, inclusive, and market-oriented program aimed at promoting sustainable livelihoods for youth and informal workers. The project will focus on skills development, entrepreneurship support, access to finance, market linkages, and strengthened worker organizations. By combining capacity building with systemic support, the project will enable participants to improve income security, enhance productivity, and transition toward more resilient and dignified livelihoods.
Implemented over 36 months, the project will directly benefit youth (ages 18–35) and informal workers, with a special focus on women, migrants, persons with disabilities, and other vulnerable groups. Through partnerships with local institutions, private sector actors, and community organizations, the project will contribute to inclusive economic growth, reduced poverty, and improved social cohesion.
Background and Context
Rapid population growth, urbanization, and limited job creation have resulted in high levels of youth unemployment and underemployment worldwide. At the same time, the informal economy has expanded as a primary source of livelihoods for millions of people. Informal workers—including street vendors, home-based workers, waste pickers, day laborers, and gig workers—often operate without legal recognition, job security, or access to training and financial services.
Youth entering the labor market face multiple barriers, including skills mismatches, lack of work experience, limited access to capital, and exclusion from formal employment opportunities. Young women and marginalized groups face additional constraints due to gender norms, caregiving responsibilities, discrimination, and limited mobility.
Economic shocks such as inflation, climate-related disasters, and public health crises disproportionately affect youth and informal workers, who lack savings and social safety nets. Without targeted interventions, these groups remain trapped in low-productivity activities with limited prospects for upward mobility.
Promoting sustainable livelihoods for youth and informal workers requires an integrated approach that addresses skills development, access to finance, market opportunities, and enabling policy environments. This project responds to these needs by supporting both individual capacity and ecosystem-level change.
Problem Statement
Youth and informal workers face persistent and interconnected challenges that undermine their ability to secure sustainable livelihoods:
- Limited Employable Skills: Many youth lack market-relevant technical, digital, and soft skills aligned with local labor market demands.
- Precarious and Low-Income Work: Informal employment is characterized by unstable earnings, unsafe working conditions, and absence of social protection.
- Restricted Access to Finance: Youth and informal workers often lack collateral, credit history, and financial literacy, limiting access to loans and savings mechanisms.
- Weak Market Linkages: Limited access to markets, information, and value chains reduces income potential and business growth.
- Gender and Social Inequalities: Women, migrants, and persons with disabilities face additional barriers to participation and advancement.
These challenges contribute to high levels of poverty, vulnerability, and social exclusion among youth and informal workers.
Goal and Objectives
Overall Goal
To promote sustainable and resilient livelihoods for youth and informal workers through skills development, entrepreneurship, access to finance, and strengthened market linkages.
Specific Objectives
- To enhance market-relevant skills and employability of youth and informal workers.
- To support entrepreneurship and self-employment through business development services.
- To improve access to financial services, savings, and productive assets.
- To strengthen market access and value chain integration for informal workers.
- To promote inclusive and gender-responsive livelihood systems.
Target Population and Beneficiaries
The project will target:
- Youth aged 18–35, including unemployed and underemployed individuals
- Informal workers in urban and peri-urban areas
- Women-led households and young women entrepreneurs
- Migrants, internally displaced persons, and persons with disabilities
Project Approach and Methodology
The project will adopt an inclusive, market-driven, and youth-centered approach, guided by the following principles:
- Demand-Driven Skills Development: Training aligned with labor market and value chain needs.
- Participation and Ownership: Beneficiaries actively involved in planning and implementation.
- Gender and Social Inclusion: Tailored strategies to address barriers faced by women and marginalized groups.
- Partnerships: Collaboration with private sector, financial institutions, and local authorities.
Key Activities
- Skills Development and Employability
- Technical and vocational training in high-demand sectors
- Digital literacy and future skills training
- Soft skills development, including communication and financial literacy
- Apprenticeships and on-the-job training with local businesses
- Entrepreneurship and Business Development
- Entrepreneurship training and business planning support
- Start-up incubation and mentoring programs
- Support for cooperatives and collective enterprises
- Access to tools, equipment, and start-up inputs
- Access to Finance and Assets
- Formation and strengthening of savings and credit groups
- Financial literacy and savings promotion
- Linkages with microfinance institutions and banks
- Seed grants or revolving funds for viable enterprises
- Market Linkages and Value Chain Development
- Market information systems and buyer-seller linkages
- Support for product quality improvement and certification
- Facilitation of participation in local and regional markets
- Engagement with private sector actors and aggregators
- Strengthening Informal Worker Organizations
Expected Outcomes and Outputs
Outcomes
- Improved employability and income levels among youth and informal workers
- Increased business survival and growth rates
- Enhanced access to financial services and productive assets
- Stronger market integration and value chain participation
- Improved inclusion of women and marginalized groups
Outputs
- Youth and workers trained in market-relevant skills
- Enterprises established or strengthened
- Savings groups and financial linkages operational
- Functional market and value chain partnerships
- Strengthened worker organizations
Monitoring, Evaluation, and Learning
A Monitoring, Evaluation, and Learning (MEL) framework will track progress and outcomes through:
- Baseline and endline surveys
- Regular monitoring of income and employment indicators
- Beneficiary feedback mechanisms
- Learning reviews and adaptive management
Sustainability and Exit Strategy
Sustainability will be ensured through:
- Strengthening local institutions and market systems
- Building financial literacy and savings habits
- Establishing long-term partnerships with private sector actors
- Supporting collective enterprises and cooperatives.
Risk Analysis and Mitigation
Risks include market fluctuations, low participation, and limited access to finance. Mitigation strategies include diversified livelihood pathways, continuous market analysis, and flexible implementation.
Conclusion
Promoting sustainable livelihoods for youth and informal workers is essential for inclusive economic development and social stability. By integrating skills development, entrepreneurship, financial access, and market linkages, this project will empower youth and informal workers to build resilient livelihoods, improve income security, and contribute meaningfully to local economies.
