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World Employment and Social Outlook – Trends 2018

The daily reality of working poverty

It is becoming increasingly difficult for me to be hired because I am considered as too old. It is a shame because I am qualified, I work as fast as and even better than younger workers.
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Louisette Fanjamalalafrom Madagascar

Thesynergyonline Economics Bureau

Millions of people around the world work, but live in poverty. A recent ILO report shows that more needs to be done to reduce inequalities and improve conditions for the working poor, who face a harsh daily reality.

GENEVA/ANTANANARIVO : Louisette Fanjamalala, has worked hard all her life, yet, like millions of working poor around the globe, she barely makes enough to survive.

Fanjamalala, from Madagascar, lives with four teenaged children – two of her own and two orphans she has adopted. Their home is a cramped one-room house in the Antananarivo suburb of Soavina. Her husband left years ago. For years, she worked in textile factories, getting only short term contracts and earning as little as 70 000 ariary (about US$20) a month in some cases, and, at best cases 300 000 ariary (about US$90). That was barely enough to feed her family. Now, things are even worse.

"It is becoming increasingly difficult for me to be hired because I am considered as too old. It is a shame because I am qualified, I work as fast as and even better than younger workers. However, nowadays, human resources departments usually turn down my request without even giving me an appointment," she sighed.

"Vulnerable employment affects three out of four workers in developing countries." Stefan Kühn, lead author of WESO Trends 2018

Because she was also a victim of violence at work, Fanjamalala recently received support from an ILO programme which provided her with new skills and a sewing machine. She now makes some money by doing sewing work at home for people in her neighbourhood. She also makes clothes and curtains that she sells at the local market. However, getting food on the family table remains a constant challenge.

"Fanjamalala's story is unfortunately very common in Madagascar and in many developing countries," said Christian Ntsay, Director of the ILO Office in Antananarivo. "You only need to walk in the streets here and talk to people to realize that the findings of the World Employment and Social Outlook: Trends 2018 (WESO) on vulnerable employment and working poverty translate into a reality faced by millions of people," he said.

"Ninety-three per cent of Malagasy workers like Louisette Fanjamalala have no other choice than working in the informal economy to survive," Ntsay added.

1.4 billion workers in vulnerable employment

"Working poverty continues to fall but – again – just like for vulnerable employment , progress is stalling," explained Stefan Kühn, lead author of the ILO World Employment and Social Outlook: Trends 2018.

"Vulnerable employment affects three out of four workers in developing countries. Almost 1.4 billion workers are estimated to be in vulnerable employment in 2017. Every year, an additional 17 million are expected to join them."

In 2017, extreme working poverty remained widespread, with more than 300 million workers in emerging and developing countries having a per capita household income or consumption of less than US$1.90 per day.

Overall, progress in reducing working poverty is too slow to keep pace with the growing labour force in developing countries, where the number of people in extreme working poverty is expected to exceed 114 million in 2018, or 40 per cent of all employed people.

"Emerging countries achieved significant progress in reducing extreme working poverty. It should continue to fall, translating into a reduction in the number of extreme working poor by 10 million per year in 2018 and 2019. However, moderate working poverty, in which workers live on an income of between US$1.90 and US$3.10 per day, remains widespread, affecting 430 million workers in emerging and developing countries in 2017," said Kühn.

"The findings of the WESO Trends 2018 report is a reminder that more efforts need to be done to reduce inequalities and to ensure better living and working conditions for people like Louisette Fanjamalala and the 1.4 billion workers facing a similar situation throughout the world," he concluded.