Informal sector high on ILO agenda

International Labour Organisation (ILO) director Martin Clemmenson says informal economy issues are always high on the global labour body’s agenda.
Clementon was speaking in Lilongwe this week on the sidelines of the official opening of an informal economy workshop.
He said many countries in the world are grappling with challenges facing the informal economy; hence, it is important that solutions are found as soon as possible.
“The informal economy is a key priority and it will gain new resources and attention as an area of critical importance. If there are not enough jobs in the formal sector to absorb the labour market entrants and if the youth that want the jobs don’t have the skills that the market needs, then they would starve,” he said.
Clemmenson said due to lack of opportunities in the formal sector, many young people are finding opportunities in the informal sector, hence the need for governments to ensure that labour ministries are well funded so that they can accomplish their programmes.
“It is a pity that in this country [Malawi], some employees have siphoned out government funds and this is going to negatively impact on the performance of the Ministry of Labour. With fewer funds, then it will be tough for the ministry to implement decent work practices as well as check performance of companies on good job practices,” said Clemmenson, referring to the looting scandal at Capital Hill.
Employers Consultative Association of Malawi (Ecam) executive director Beyani Munthali said there is a need to lower investment costs and provide better financing opportunities to unleash potential of micro, small and medium enterprises as they are at the core of the priority cluster strategies of many countries.
“As Ecam, we want to link decent work programmes to creating more and better employment and income generation opportunities, particularly for the vulnerable groups including the youth, women and people with disabilities, as well as ensuring the elimination of the worst forms of child labour,” said Munthali.
He said the country must ensure that the informal economy is integrated into the formal economy.
“We must work together effortlessly to establish direct strategies that can allow employers and workers in the informal economy to grow without many hitches,” said Munthali.