Updating the Definition of Informal Workers: The International Labour Conference Takes Action

Web Editor

June 5, 2025

a woman in a face mask sitting on a bench next to a cart of candy bags and a child, Bourgeois, hyper

Background on the Issue

At the 113th meeting of the International Conference of Labour (ICL), workers have set their stance regarding the discussion on labour informality. The current concept, dating back to 2015, is considered too general and requires updating due to deficiencies in identifying informal work modalities.

Who is Hiram Sánchez Pavón?

Hiram Sánchez Pavón, the subdirector of International Relations at the National Labour Council (Consejo Nacional Laboral), will lead the drafting of the updated document to be discussed next week.

The Extent of Informal Work

According to the International Labour Organization (ILO), over 2 billion workers, or nearly 58% of global employment, and 80% of businesses worldwide operate in the informal economy. This poses a significant challenge to achieving workers’ rights and decent labour conditions.

Benefits of Transitioning to Formal Employment

Promoting a transition from informal to formal employment can help reduce poverty and inequality, boost productivity, encourage decent work, strengthen governments’ capacity to act, and promote social justice.

Updating the Definition

Sánchez Pavón explained to El Economista that the goal is to move away from labelling workers as “informal” and instead recognize them as regular workers, ensuring they receive basic rights protections and guarantees.

Key Questions and Answers

  • What is the purpose of updating the informal work definition? The aim is to better reflect current realities and address deficiencies in identifying informal work modalities.
  • Why is updating the definition important? It will help recognize informal workers as regular employees, ensuring they receive essential rights protections and guarantees.
  • What are the benefits of transitioning to formal employment? It can reduce poverty and inequality, increase productivity, promote decent work, strengthen governments’ capacity to act, and foster social justice.
  • How widespread is informal work? According to the ILO, over 2 billion workers and 80% of businesses worldwide operate in the informal economy.