Transition to formal employment in the BRICS countries: Challenges and perspectives

Abstract

The article presents the results of a desk study of documents adopted by the ministers of labor and employment of the BRICS countries with special focus on formalization of labor markets. Declarations and other documents were analyzed through the prism of compliance with the concept of decent work, human centered development and development of inclusive labor markets. The author concludes that informal employment remains a challenge for the BRICS countries, both for workers and for governments. For informally employed workers, this status is increasing the risks of violation of labor rights, dismissal, exposure to unsafe or hazardous working conditions, limitation of accessibility of training and re-training needed to update their skills and competences, the risk of not accumulating sufficient pension rights by the time of retirement, etc. For governments, the phenomenon of informality limits their fiscal space and capacity to develop and implement employment and social protection programs and strategies aimed at formalizing labor markets, increasing the well-being of the population and developing human capital. The multilateral co-creation of the BRICS countries in addressing labor and employment issues demonstrates their strong commitment to ensuring full implementation of the decent work concept within their human centered and inclusive development strategy. The constant exchange of information and experience contributes to the fine-tuning of national employment policies to respond to the emerging challenges and opportunities. Strengthening of cooperation among the BRICS countries increases the perspectives of progress in formalizing their labor markets.