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2.6 Inclusive labour policies

A human rights economy requires that inclusion be treated as a structural principle of labour market design rather than a corrective measure.

This proposal treats inclusion as a structural principle of labour market design, rather than a corrective measure. Labour policies encompass laws, regulations, and institutional measures that shape how labour markets function, including both the quantity and quality of work. Critically, such policies define who counts as a worker; which forms of labour are protected; and what kinds of jobs are prioritized within the economy. Labour policies commonly address inequality through: anti-discrimination legislation; minimum wage laws; social protection; and training and skills development. However, these approaches often assume a standard employment relationship, limiting their effectiveness for non-standard and informal employment. Yet non-standard and informal employment are the norm for most of the world’s workers. It is not randomly distributed and remains stratified along intersectional lines. This makes it a key site where structural inequalities are produced and reproduced. Targeted intervention is essential to disrupt cycles of working poverty, vulnerability to exploitation, and exclusion from decent work. To address the realities of intersectional inequality in the labour market, inclusive labour policies should: adopt an expansive definition of “worker” to increase coverage; adapt universal protections and entitlements to ensure they can be effectively exercised, irrespective of how and where work takes place; enact targeted measures to address specific forms of discrimination; deliberately integrate macroeconomic, sectoral, and labour policies within a coherent framework; and ensure effective implementation, oversight and enforcement in all workplaces. Institutionalising structured social dialogue that includes marginalized workers is essential to facilitate meaningful participation in decision-making, so that the design of labour policies is adaptive and responsive to the needs of workers outside standard employment. Inclusive labour policies contribute to eradicating poverty beyond growth by redistributing power and prosperity across labour markets. They shift resources toward marginalized workers, reducing inequality and improving wellbeing; strengthen democratic accountability, by embedding worker voice in decision-making; stabilize incomes, which supports local economies and enhances resilience; and redirect investment into socially necessary sectors, creating pathways to decent work for excluded groups.