More than 4 billion people still lack any social protection, ILO report finds

Despite the unprecedented worldwide expansion of social protection during the Covid-19 crisis, more than 4 billion people around the world remain entirely unprotected, a new International Labour Organization (ILO) report said.

It found that the pandemic response was uneven and insufficient, deepening the gap between countries with high and low income levels and failing to afford the much-needed social protection that all human beings deserve. Social protection includes access to health care and income security, particularly in relation to old age, unemployment, sickness, disability, work injury, maternity or loss of a main income earner, as well as for families with children.

The World Social Protection Report 2020-22: Social protection at the crossroads – in pursuit of a better future  gives a global overview of recent developments in social protection systems, including social protection floors, and covers the impact of the Covid-19 pandemic. The report identifies protection gaps and sets out key policy recommendations, including in relation to the targets of the 2030 Agenda for Sustainable Development.

"We must recognise that effective and comprehensive social protection is not just essential for social justice and decent work but for creating a sustainable and resilient future too," ILO Director-General Guy Ryder said.  

"Countries are at a crossroads," Ryder said. 

He added: "This is a pivotal moment to harness the pandemic response to build a new generation of rights-based social protection systems. These can cushion people from future crises and give workers and businesses the security to tackle the multiple transitions ahead with confidence and with hope. We must recognise that effective and comprehensive social protection is not just essential for social justice and decent work but for creating a sustainable and resilient future too."

Currently, only 47% of the global population are effectively covered by at least one social protection benefit, while 4.1 billion people (53%) obtain no income security at all from their national social protection system.

There are significant regional inequalities in social protection. Europe and Central Asia have the highest rates of coverage, with 84% of people being covered by at least one benefit. The Americas are also above the global average, with 64.3 %. Asia and the Pacific (44 %), the Arab States (40 %) and Africa (17.4 %) have marked coverage gaps.

Worldwide, the vast majority of children still have no effective social protection coverage – only one in four children (26.4%) receives a social protection benefit. Only 45% of women with newborns worldwide receive a cash maternity benefit. Only one in three persons with severe disabilities (33.5 %) worldwide receive a disability benefit. Coverage of unemployment benefits is even lower; only 18.6 % of unemployed workers worldwide are effectively covered. And while 77.5 % of people above retirement age receive some form of old-age pension, major disparities remain across regions, between rural and urban areas, and between women and men.

Government spending on social protection also varies significantly. On average, countries spend 12.8 % of their gross domestic product (GDP) on social protection (excluding health), however high-income countries spend 16.4 % and low-income countries only 1.1 % of their GDP on social protection.

The report says that the financing gap (the additional spending required to ensure at least minimum social protection for all) has increased by approximately 30 % since the start of the Covid-19 crisis.

To guarantee at least basic social protection coverage, low-income countries would need to invest an additional $77.9 billion per year, lower-middle-income countries an additional $362.9 billion per year and upper-middle-income countries a further $750.8 billion per year. That's equivalent to 15.9, 5.1 and 3.1% of their GDP, respectively.

"There is an enormous push for countries to move to fiscal consolidation, after the massive public expenditure of their crisis response measures, but it would be seriously damaging to cut back on social protection; investment is required here and now," said Shahra Razavi, Director, ILO Social Protection Department.

"Social protection is an important tool that can create wide-ranging social and economic benefits for countries at all levels of development. It can underpin better health and education, greater equality, more sustainable economic systems, better managed migration and the observance of core rights. Building the systems that can deliver these positive outcomes will require a mix of financing sources and greater international solidarity, particularly with support for poorer countries. But the benefits of success will reach beyond national borders to benefit us all," she said.