Empowering the informal workforce: skills for decent jobs though (dualized) VET

In this first session, an exchange platform was organised to understand the dynamics of the informal sector and the diverse contexts of informal workers. Associations representing informal workers shared their experience on suitable strategies to reach marginalized groups in the informal economy, how to train them, and how to support them for sustainable and decent work opportunities in the formal or informal labour market.

A panel discussion and breakout session with several informal workers associations took place, representing:

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Introductory remarks were provided by Julia Schmidt, Gesellschaft für internationale Zusammenarbeit (GIZ), on the informal economy and the needs for closing the skills gaps

Key messages and learnings from the panel discussion and the breakout sessions

1. Informal workers are skilled –  but unrecognized

Informal workers acquire most skills on the job, through peer learning, traditional apprenticeships, and self‑learning. Yet these valuable skills remain invisible without recognition systems such as RPL. Dual VET helps make skills visible without forcing premature formalisation.

  • Example: In India, domestic workers perform complex care tasks, but historically held zero recognised qualifications. Through occupational mapping, the Home Management & Caregivers Council (HMCG SSC) expanded from 1 to 42 qualifications, giving domestic and care workers formal recognition of their skills — a breakthrough for a sector of up to 40 million workers.

2. Training must fit informal workers’ realities

Informal workers face barriers such as loss of daily income, safety concerns, literacy gaps, and rigid training schedules. Effective training must be flexible, modular, mobile, short, and delivered in or near their workplaces.

  • Example: ICP Centers (ICPCs) in Rwanda hold training on-site in carpentry clusters, so workers don’t lose productive time and can train using their own machinery and daily workflows.

3. Learning pathways need to build on what exists

Informal systems have strong strengths: community networks, tacit knowledge, practical learning. Dual VET works best when it organises and upgrades, not replaces. Pathways like helper → skilled worker → master craftsperson → trainer enable real career progression.

4. Workers need more than technical skills

Successful upskilling integrates: Literacy & numeracy, Life skills, Digital skills, Entrepreneurial and managerial skills, and occupational safety & health. These skills empower informal workers to navigate markets, improve income, and reduce vulnerability.

  • Example: SEWA’s peer-to-peer literacy approach starts with life skills (banking, administrative procedures), motivating women to learn reading/writing because they experience immediate benefits.

5. Organisation is a game‑ghanger

Where informal workers are organised (e.g., cooperatives, associations, unions), they gain: voice and representation, better access to training, improved working conditions, and collective bargaining power. Organised workers are better positioned to engage in dual VET systems.

  • Example: UTEP Argentina represents the “popular economy” — people recovering from addiction, crime, or long-term exclusion. Only 20% of informal workers are organised; when they join UTEP, they gain access to training, market access, and collective bargaining for better prices and wages.

6. Dual VET can connect training to real market demand

Whether in carpentry, agriculture, recycling, care work or digital/green sectors, dual VET helps align training with actual employer needs, local labour market opportunities and evolving economic trends. This increases the chances of transitioning into decent and sustainable work.

  • Examples:
    • Rwanda’s carpenters learn new designs because customers request them — ICPC trainings align with demand patterns from the market, not school-based assumptions.
    • SEWA connects farmers to processing hubs and modern value chains (e.g., organic produce, bakery, café operations), turning traditional skills into market-relevant enterprises.
    • HMCG SSC responds to strong labour demand in the care sector and even international mobility needs, e.g., rising global demand for certified elderly and childcare workers.

7. Governments must recognise informality as permanent

Informality will not disappear. Policies, financing, recognition systems and training institutions must embrace informal workers, not ignore them. Public policies are critical to making dual VET inclusive and scalable.

8. Training only matters if it leads to better work

Key to decent-work transitions are industry linkages, Post-training tracking, Clear career pathways, Supportive social protection measures. Dual VET must ultimately deliver real income improvements, job quality gains, and dignity.