Gaps In Social Protection Leave Workers Vulnerable, Says ILO Report

A new report by the International Labour Organisation (ILO) has warned that millions of workers worldwide remain exposed to economic and social risks due to significant gaps in social protection systems, calling for urgent and comprehensive reforms to address the growing vulnerabilities in an increasingly volatile global economy.

The report, titled Universal Social Protection in Changing Labour Markets: Protecting Workers in All Types of Employment, underscores the critical need to strengthen and expand social protection frameworks to ensure that all workers, regardless of employment status, are adequately protected throughout their working lives.

It highlights that inadequate coverage, insufficient benefits, and weak financing mechanisms continue to undermine the effectiveness of existing systems.

According to the ILO, social protection systems encompass a range of policies, programmes, and employer-provided benefits designed to safeguard workers against risks such as unemployment, illness, disability, and old age. These systems also play a vital role in reducing poverty, improving overall welfare, and promoting economic stability.

Speaking on the findings, Director of the ILO’s Universal Social Protection Department, Shahra Razavi, stressed that reform is no longer optional but essential.

She noted that countries must develop systems that are inclusive, provide adequate levels of support, and are financed in a fair and sustainable manner. Such systems, she said, are fundamental to building resilience, advancing social justice, and ensuring a fair transition in the evolving world of work.

The report places particular emphasis on the need to extend social protection coverage to workers who are often excluded from formal systems.

These include individuals in temporary and part-time roles, the self-employed, and workers in micro and small enterprises, agriculture, domestic work, and other informal or non-standard forms of employment. Expanding coverage to these groups, the ILO argues, would not only enhance social and economic outcomes but also facilitate the transition from informal to formal employment.

Beyond expanding access, the report stresses the importance of ensuring that benefits are both adequate and comprehensive. It calls for a shift away from fragmented and reactive measures toward more integrated systems that provide continuous support across the life course, from early childhood and entry into the workforce to parenthood, periods of unemployment or illness, and old age.

Financing remains a central challenge, the report notes. The ILO advocates for sustainable funding models based on domestic resource mobilisation, including social security contributions and progressive taxation. It also highlights the role of targeted public subsidies to support workers with limited capacity to contribute.

For countries with constrained fiscal space, the report emphasises the continued importance of international support in building resilient and inclusive social protection systems.

The findings come at a time of significant global transformation driven by climate change, technological advancements, and demographic shifts. In this context, the ILO stresses that robust social protection systems are essential to helping workers and businesses adapt to change, support transitions to more sustainable economic activities, and strengthen social cohesion.

Overall, the report calls for coordinated and decisive action by governments, employers, and international partners to close existing gaps and build universal social protection systems capable of meeting the demands of a rapidly changing labour market.