Introduction
Informal workers form the backbone of many economies, particularly in low- and middle-income countries. They contribute significantly to sectors such as agriculture, construction, waste management, domestic work, street vending, transport, home-based production, and services. Despite their economic importance, informal workers often operate outside formal labor protections, leaving them vulnerable to unsafe working conditions, income insecurity, exploitation, and social exclusion.
The COVID-19 pandemic, climate change impacts, rapid urbanization, and economic shocks have further exposed the fragility of informal livelihoods. Informal workers—especially women, migrants, youth, persons with disabilities, and climate-affected populations—face heightened risks related to occupational hazards, lack of social protection, limited access to skills development, and exclusion from policy processes.
This proposal, Safe and Inclusive Work Opportunities for Informal Workers, seeks to improve the safety, dignity, and economic security of informal workers by promoting inclusive labor practices, occupational safety, access to social protection, skills development, and pathways to formalization. By adopting a rights-based, gender-responsive, and climate-sensitive approach, the project aims to strengthen livelihoods while contributing to inclusive and sustainable economic development.
Problem Statement
Globally, more than half of the workforce is engaged in informal employment. Informal workers typically lack written contracts, minimum wage guarantees, occupational safety standards, health insurance, paid leave, and retirement benefits. Many work in hazardous environments with limited access to protective equipment, healthcare, or grievance mechanisms.
Key challenges faced by informal workers include:
- Unsafe and unhealthy working conditions
- Irregular and low incomes
- Lack of access to social protection and labor rights
- Limited opportunities for skills upgrading and career mobility
- Discrimination based on gender, caste, migration status, or disability
- Exclusion from decision-making and policy dialogue
Climate change and environmental degradation further intensify risks, particularly for workers dependent on climate-sensitive sectors such as agriculture, waste picking, construction, and street vending. Without targeted interventions, informal workers will remain trapped in cycles of vulnerability and poverty, undermining broader development and decent work goals.
Project Goal and Objectives
Overall Goal
To enhance the safety, inclusivity, and economic resilience of informal workers by improving working conditions, access to social protection, and sustainable livelihood opportunities.
Specific Objectives
- To improve occupational safety and health (OSH) conditions for informal workers.
- To increase access to social protection, legal identity, and labor rights.
- To strengthen skills, productivity, and income opportunities for informal workers.
- To promote gender equality, social inclusion, and dignity of work.
- To strengthen institutional mechanisms and policies that support informal workers.
Target Beneficiaries
- Primary Beneficiaries
- Informal workers, with a focus on:
- Women workers and women-headed households
- Migrant and seasonal workers
- Youth engaged in informal employment
- Waste pickers, street vendors, domestic workers, and home-based workers
- Workers in climate-vulnerable and urban poor communities
- Informal workers, with a focus on:
- Secondary Beneficiaries
- Households of informal workers
- Worker collectives, cooperatives, and associations
- Local governments and labor institutions
- Communities benefiting from improved services and livelihoods
Key Sectors of Intervention
The project will prioritize informal work sectors with high vulnerability and employment potential, including:
- Urban informal services (street vending, transport, domestic work)
- Waste management and recycling
- Construction and infrastructure-related informal work
- Agriculture and allied informal activities
- Home-based and micro-enterprises
Project Components and Activities
- Outreach, Mapping, and Worker Mobilization
- Occupational Safety and Health (OSH) Improvement
- OSH risk assessments in key informal work sectors
- Provision of personal protective equipment (PPE) and safety tools
- Training on workplace safety, health, and first aid
- Linkages with health services for regular check-ups
- Skills Development and Livelihood Enhancement
- Access to Social Protection and Legal Support
- Support for obtaining legal identity, registration, and documentation
- Facilitation of access to health insurance, pensions, and social security schemes
- Legal awareness and grievance redress mechanisms
- Partnerships with labor departments and social welfare agencies
- Gender Equality and Social Inclusion
- Targeted support for women informal workers
- Addressing unpaid care burdens through flexible programming
- Safe spaces and leadership development for women workers
- Inclusion of persons with disabilities and marginalized groups
- Policy Engagement and Institutional Strengthening
Human Rights, Gender, and Inclusion Approach
The project adopts a rights-based approach aligned with international labor standards. Gender equality and social inclusion are mainstreamed across all components through:
- Sex- and age-disaggregated data collection
- Inclusive participation and leadership of women and marginalized workers
- Safeguarding policies and grievance mechanisms
- Engagement of men and community stakeholders to shift norms
Environmental and Climate Considerations
Environmental sustainability and climate resilience are integrated by:
- Promoting safer, environmentally responsible informal work practices
- Supporting climate-resilient livelihoods and income diversification
- Reducing environmental health risks through improved waste and sanitation practices
- Strengthening adaptive capacity of climate-exposed workers
Expected Results and Outcomes
Outputs
- Informal workers trained on safety, skills, and rights
- PPE and safety tools distributed
- Workers registered and linked to social protection schemes
- Worker groups and cooperatives strengthened
Outcomes
- Improved safety and reduced occupational hazards
- Increased income stability and productivity
- Enhanced access to social protection and services
- Greater inclusion of informal workers in local decision-making
Long-Term Impact
- Safer, more dignified work for informal workers
- Reduced poverty and vulnerability
- Progress toward decent work and inclusive economic growth
Monitoring, Evaluation, and Learning (MEL)
The project will implement a participatory MEL framework, including:
- Baseline, midline, and endline assessments
- Tracking of safety incidents, income changes, and service access
- Gender- and sector-disaggregated indicators
- Learning reviews and adaptive management
Sustainability and Exit Strategy
Sustainability will be achieved through:
- Strengthening worker organizations and cooperatives
- Institutionalizing OSH and social protection linkages
- Policy adoption and local government ownership
- Capacity building of workers to sustain improvements independently
By project completion, informal workers and institutions will have the capacity to continue safer and more inclusive work practices.
Partnerships and Stakeholders
Key stakeholders include:
- Informal worker unions and associations
- Local and national government agencies
- Health and social protection providers
- NGOs and civil society organizations
- Private sector and urban service providers
Multi-stakeholder collaboration will ensure effectiveness and scalability.
Budget Overview (Indicative)
The project budget will cover:
- Training and capacity-building activities
- Safety equipment and tools
- Social protection facilitation and legal support
- Monitoring, evaluation, and project management
A detailed budget will be developed according to donor requirements.
Conclusion
Creating safe and inclusive work opportunities for informal workers is essential for achieving decent work, social justice, and sustainable development. By improving safety, strengthening livelihoods, and promoting inclusion, this project will enhance the dignity and resilience of millions of informal workers. Safe and Inclusive Work Opportunities for Informal Workers offers a practical, scalable model aligned with global commitments on decent work, social protection, and inclusive growth.
