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30 Countries with the Highest Vulnerable Employment in the World
Zahaab Rehman
12 min read

In This Article:

In this article, we take a look at 30 countries with the highest vulnerable employment in the world. If you would like to skip our detailed analysis of vulnerable employment, you can directly go to 5 Countries with the Highest Vulnerable Employment in the World.

Defining Vulnerable Employment

The UN and ILO define vulnerable employment as the sum of own-account workers and contributing family workers. Own-account workers are self-employed individuals who do not work under a formal employer. Contributing family workers refer to individuals working within a family business or farm without formal pay. While there are several ways to interpret vulnerable employment, the phrase mainly refers to less-than-ideal working conditions. These individuals are considered vulnerable because they may lack some of the protective benefits that come with formal employment, such as unemployment benefits, paid leaves, and workers’ compensation, among others.

According to the definition by the International Labor Organization, individuals who are vulnerably employed may have inadequate earnings, lower productivity, and challenging work conditions. Because these individuals are less likely to have formal work arrangements, they have a higher chance of working in indecent conditions and lacking effective representation through organizations such as unions. The ILO further states that assessing vulnerable employment is as essential as unemployment because the former allows one to understand work deficits among the employed population. A high rate of vulnerable employment signifies higher deficits. According to World Bank data, 45% of the global population was vulnerably employed in 2022, most of which was concentrated in the developing world. The bulk of vulnerable employment resides in Sub-Saharan Africa, where 75% of the employed population is in vulnerable employment. In contrast, the least can be seen in North America, where vulnerable employment is only 5%.

The World Bank states that a large proportion of own-account workers signifies that the formal employment sector is struggling with low growth. It also is an indication of a large agricultural industry. Similarly, a large proportion of contributing family workers signifies a largely rural economy populated by weak development and minimal job growth. Due to a lack of formal work arrangements, these individuals are highly likely to fall prey to economic shocks which renders them much more vulnerable to poverty.

Gender Disparity in Vulnerable Employment

Vulnerable employment is severely disproportionate in terms of gender. In 2017, although the overall vulnerable employment rate was similar for men and women (slightly below 43%), the differences were substantial among the two sub-categories. The ILO reported that 68% of own-account workers were male, and 63% of contributing family workers were female. This meant that women were more likely to work without pay in businesses operated by someone else in the household, whereas men were more likely to work for themselves. The overall rate of vulnerable employment showcased a gender-specific difference only in the African region, where vulnerability in employment was 58% for men and 76% for women, presenting a difference of 17 percentage points. On the other hand, you can also check out some of the best countries to work in.

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