Expanding Social Protection and Addressing Informality in Latin America
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Informality is one of Latin America's most persistent challenges, shaping the lives of millions of workers and their families. Nearly half of the region's labour force works outside formal arrangements, without secure contracts, stable incomes, or access to social protection. The COVID-19 pandemic exposed the vulnerabilities of these workers with stark clarity: while formal employees often retained coverage and income support, informal workers were left among the hardest hit by job losses, poverty, and exclusion.
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Informality is one of Latin America's most persistent challenges, shaping the lives of millions of workers and their families. Nearly half of the region's labour force works outside formal arrangements, without secure contracts, stable incomes, or access to social protection. The COVID-19 pandemic exposed the vulnerabilities of these workers with stark clarity: while formal employees often retained coverage and income support, informal workers were left among the hardest hit by job losses, poverty, and exclusion.
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