The World Bank report states that 55 per cent of workers in Latin America and the Caribbean are in informal employment, a proportion that has remained largely unchanged for nearly two decades.
The report notes that informality is not homogeneous. “Informal wage workers are often young people in transition or facing barriers to entry, while own-account workers frequently choose self-employment deliberately for flexibility, autonomy and independence,” the report said.
It further states that most informal activity occurs in micro-businesses and family enterprises focused on maintaining a local scale rather than pursuing high corporate growth. 
The Bank identifies strengthening the business fabric as the central challenge so that more firms with productive potential can expand and create jobs.
With the working-age population in Eswatini growing by more than 15 000 people since 2023, the government faces the same demographic pressure the Bank describes, which is integrating more young people into work that offers stability.
To address labour market challenges, the World Bank recommends a three-pillar approach. “The first pillar is improving skills across the human capital distribution through better technical education and business training.
The second is undertaking reforms to increase formal sector dynamism. The third is reforming social protection systems to protect people directly rather than based on contracting status,” the report details.
The report adds that progress is enhanced by a predictable regulatory environment and inclusive access to financing.
The World Bank also warns that delaying action is not an option given the demographic pressure to integrate millions of young people into the labour market.
“Countries have an opportunity to transform labour markets if they align talent development, a business-enabling environment and social protection around a common goal,” the report reveals.
In Eswatini, the 10 871 additional people recorded as employed since 2023 represent progress.
But with the Prime Minister now calling for jobs that sustain households, the test will be whether that growth translates into wages and security that families can rely on month to month.
