5 Ways to Improve the Lives of People Working in Informal Sectors

In today’s world, a significant portion of the workforce is employed in the informal sector. These workers, who do not have formal job contracts or benefits, face many challenges that hinder their ability to live full and healthy lives. Thankfully, there are several ways in which we can improve their lives and ensure that they are well-equipped to contribute meaningfully to society. Here are five ways to make a difference:

1. Create Access to Finance: One of the most significant obstacles for informal sector workers is a lack of access to finance. Without access to credit, they cannot purchase equipment, inventory or tools to help them work more efficiently or take advantage of business opportunities. Governments can help financial institutions create loan products that cater to informal sector workers, which promotes their growth and gives them the tools they need to succeed.

2. Protect Workers’ Rights: Informal sector workers are often not entitled to the same legal protections and benefits as formal sector workers. This inequality contributes to a cycle of poverty, where workers remain trapped in low-wage jobs without benefits or job security. We can combat this by strengthening labour laws and enforcing them, ensuring that all workers are entitled to the same rights, protections and benefits, regardless of their employment status.

3. Improve Health and Safety: Many informal sector jobs are hazardous, with workers often lacking protective equipment or exposure to dangerous chemicals or substances. Governments must work to ensure these workers have access to safe work environments, training on safety measures, and resources for healthcare and medical treatment.

4. Provide Skills Training: Informal sector workers are highly skilled but often do not have the proper training that can help them improve their work and earn higher wages. Governments and local organizations can offer training programs that are specifically designed to meet the needs of informal sector workers, helping them develop marketable skills that can increase their earnings and improve their quality of life.

5. Expand Access to Markets: Informal sector workers often lack the connections and networks necessary to access new markets and expand their business opportunities. Government initiatives that promote linkages between informal and formal sectors can help workers access new markets, connect with buyers and sell their products more effectively.

By adopting these five approaches, we can create a more equitable and inclusive society where informal sector workers have opportunities and support to improve their lives. With proper funding, resources and programming, their contribution to the economy and society as a whole can be fully realized. Let’s work together to ensure a better future for all.