Extending unemployment benefits major challenge for India: ILO report

Social protection increased in Asia-Pacific region, says report; it adds that about 2.1 billion people still remain unprotected against various lifecycle and socio-economic risks as progress in extending social protection has been uneven 

The Asia-Pacific region, for the first time, has covered 53.6% of its population by at least one social protection benefit, according to a new International Labour Organisation (ILO) report released in Bangkok on Monday (September 30, 2024).

The report, however, added that about 2.1 billion people still remain unprotected against various lifecycle and socio-economic risks as progress in extending social protection has been uneven. It added that social protection systems in the region face transformative challenges that require significant strengthening to mitigate the impacts of climate change on populations in the region. 

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The report, titled ‘Regional companion report for Asia and the Pacific of the World Social Protection Report 2024-26: Universal social protection for climate action and a just transition’, said since 2015 the effective coverage rate in eastern Asia increased by 15.2 percentage points (from 63.3 to 78.5%); by 13.4 percentage points (32.5 to 45.9%) in south-eastern Asia; by 16.7 percentage points (18.7 to 35.4%) in southern Asia; and by 6.8 percentage points (65.7 to 72.5%) in the Pacific Islands. “However, significant disparities exist among countries,” the ILO said. 

Lower social security coverage, the report said, reflects a range of factors including substantial differences in levels of GDP and institutional capacity, vastly different population sizes, and humanitarian challenges. It said the five most populous countries — Bangladesh, China, India, Indonesia and Pakistan — have quite different coverage rates, with 22%, 75.6%, 48.4%, 54.3% and 20.2%, respectively.

“The region faces challenges in the adequacy of benefits and the financial sustainability of social protection systems. In 2023, the region spent 11.8% of GDP for social protection, well below the global average of 19.3%,” the report said. 

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The report said India’s child food programme covers 51.9% of children and the expansion of this programme accounts for the recent increases in the effective coverage rate for child benefits in southern Asia and the higher rate in the subregion than the regional average. 

The report added that the unemployment insurance schemes exist in India and Iran, but their coverage is limited. “In India, unemployment insurance covers by law only 11.5% of the working-age population. Moreover, not all unemployed jobseekers actually receive unemployment benefits. The extension of unemployment protection to workers in the informal sector remains a major challenge in India,” it noted. 

The report also revealed that the effective coverage of women by at least one benefit lags that of men by 6.8 percentage points; a figure that is particularly pronounced in southern Asia, where a 11.1 percentage-point gap exists.

“Investing in comprehensive and resilient social protection systems has never been as urgent as it is today,” said Chihoko Asada-Miyakawa, ILO Assistant Director-General and Regional Director for Asia and the Pacific.

With the region home to 16 of the 50 most vulnerable countries to climate change, the report also stressed that how properly designed and funded social protection systems will help mitigate the adverse impacts of climate change, provide income protection for those affected by climate policy measures, and promote the transition towards a green economy.

Published - September 30, 2024 10:08 pm IST