Market mechanisms fail to tackle low pay and in-work poverty, particularly of supply chain workers and platform workers. Statistically, an estimated 327 million wage workers across the world are paid at, or below, the applicable minimum wage, which in many countries is set even below the living wage. Beyond low pay, there are great concerns regarding the inability of market mechanisms to adequately value work with social value (such as care) or ecological value (such as green jobs), even while demand for such services remains unsatisfied. Regarding care, the World Health Organization projects a shortfall of 18 million health workers by 2030, due to low working conditions and attractivity in the care sector. To tackle in-work poverty, this policy proposal recommends adopting and enforcing best-practice minimum wage legislation, platform work legislation, and supply chains due diligence legislation in line with the OECD, Handbook on Due Diligence for Enabling Living Incomes and Living Wages in Agriculture, Garment and Footwear Supply Chain (2024). Regarding the social and ecological value of work beyond its market value, it recommends developing objective indicators to measure the positive and negative social and ecological value of work, consistent with proposals made by the Special Rapporteur in his report on the working poor. It recommends investments and legal protection of the working conditions of care and support workers, providing social security for unpaid care workers, and encouraging care leaves. Regarding green jobs, it recommends employment policies that create green jobs, promote green vocational training, protect the income of workers and provide social security of unpaid workers in green jobs in line with the ILO Just Transition framework. Finally, it encourages governments to introduce maximum income caps and accountability mechanisms to prevent and deter high remuneration in economic sectors and activities with high negative social and ecological value.
