Jordan, ILO Launch Workshop on Formal Economy Shift

The Ministry of Labour (MoL) in cooperation with the International Labour Organization (ILO), has launched a three-day national workshop with the participation of more than 70 representatives from ministries, government agencies, and civil society organisations to strengthen efforts to transition from the informal to the formal economy.

The workshop aims to foster dialogue on national priorities in preparation for a government-led national framework for the transition, with technical support from the ILO. Participants are also reviewing strategies to promote decent work, expand social protection and support sustainable economic growth.

Minister of Labour Dr. Khaled Al-Bakkar said the government is working to coordinate efforts among the public and private sectors, local and international civil society organisations, and representatives of workers and employers "to build a common understanding of the informal and formal economies, and to develop a plan that includes policies and measures to address the risks of the informal economy."

He added that the government seeks to reach "consensus on a comprehensive and shared concept of the formal and informal economies, grounded in international definitions while reflecting Jordan's unique context." He underlined the goal of defining the features of the formal economy, agreeing on principles for a gradual transition, and preparing "an initial roadmap to advance the formalisation process and propose clear policies that ensure the transition is inclusive and sustainable."

Al-Bakkar stressed that "social protection is a fundamental pillar of formalisation," essential to protecting vulnerable workers, enhancing job security and ensuring inclusive and sustainable growth.

Amal Mowafy, Employment Policy Specialist and Country Coordinator of the ILO Office in Jordan, highlighted the organization's commitment: "The ILO is proud to support Jordan in moving forward in this vital path, which contributes to an inclusive and resilient transition towards the formal economy, based on the principles of decent work."

Mowafy noted that the workshop reviews joint research between the ILO and partners, with a focus on addressing challenges such as access to universal social protection and aligning labour supply and demand. She added that it also introduced new ILO methodological tools to assess and mitigate risks of informal work. "Jordan is one of only two countries worldwide selected to apply these tools," she said.

Dr. Tayseer Meqdadi, Assistant Director-General for Technical Affairs at the Department of Statistics (DOS), underlined the centrality of data: "A deep statistical understanding of the informal sector is the basic entry point for any reform effort."

He explained that the DOS, in collaboration with MoL, is developing more accurate mechanisms for data collection and analysis. These will establish a documented information base on the informal sector to guide policies for its gradual formalisation and ensure that workers can access their social and legal rights without jeopardising their livelihoods.

The workshop is part of the ILO technical support activities to strengthen social protection and support workers' transition to the formal economy, with funding from the Kingdom of Norway, the Kingdom of the Netherlands and the United Kingdom.