Innovative approaches to promoting the transition to formality in Latin America and the Caribbean

This background guide supports the Regional Tripartite Knowledge Sharing Forum on “Innovative Approaches to Promoting the Transition to Formality in Latin America and the Caribbean.” It addresses the persistent and multidimensional challenge of informality, which disproportionately affects vulnerable groups such as women, youth, ethnic minorities, migrants, and workers in low-productivity sectors. The guide outlines the context, trends, and progress since the adoption of ILO Recommendation No. 204 (R204) in 2015, and highlights innovative practices and policy approaches aimed at fostering formalization. It categorizes these approaches into three areas: enhancing productivity in transitional micro and small enterprises (MSEs), leveraging digital technologies, and exploring underutilized strategies such as sectoral and institutional coordination. The document serves as a preparatory input for ILO constituents ahead of the 113th International Labour Conference in 2025.