[{"bbox": [114, 152, 1076, 238], "category": "Text", "text": "contributing not only to inequality and poverty, but also to low productivity and lost opportunities for Peru to grow economically and socially by developing its internal market and be able to compete fairly on the international markets."}, {"bbox": [114, 255, 1076, 405], "category": "Text", "text": "Improving labour law, tax enforcement, sanctioning incompliance and reducing \"red tape\" for formalizing business are identified by the OECD as key recommendation for the reform agenda requested to integrate the OECD as a member. OECD Technical Committees are providing the space needed to identify and define concrete and realistic measures to respond to the OECD key recommendations related to how to reduce informality and increase cohesion in Peru."}, {"bbox": [114, 421, 1076, 541], "category": "Text", "text": "Importantly, informal employment does not affect all population groups equally: women, youth, migrants, people with disabilities and racial minorities, indigenous and afro descendants as well as sexual minorities (such as LGBTQI+) tend to be more exposed. They are confronted with higher barriers to enter into the formal labour market resulting in higher informality rates for specific vulnerable groups."}, {"bbox": [114, 555, 1076, 614], "category": "Text", "text": "Widespread informality remains a key structural challenge, which has important implications not only in terms of inequality of income or vulnerability, but also in terms of productivity and economic growth."}, {"bbox": [114, 628, 1076, 746], "category": "Text", "text": "Peru has ratified the various ILO Conventions and is therefore committed to promoting decent work, labour rights and social dialogue, at the same time sanctioning child and forced labour (the recent EU directive on social responsibility reiterates the EU commitment to those objectives). The national policy for decent work is the translation of this commitment⁶."}, {"bbox": [114, 763, 1076, 883], "category": "Text", "text": "Specifically, in relation to informality, Peru has not yet articulated a nationally owned multi-sectoral strategy, that cuts across a range of policy areas, to respond to this multi-faceted problem⁷. However, it has formulated several sectoral strategies that jointly contribute to establishing some national responses and a relative order of priorities:"}, {"bbox": [114, 897, 1076, 1017], "category": "Text", "text": "**The Multiannual Sectoral Strategic Plan (PESEM) 2024 - 2030** of the Ministry of Labour and Employment Promotion (MTPE) is a step forward in providing a sectoral response towards reducing informality. It clearly identifies two priorities: i) to increase labour formality and decent jobs and, ii) to generate decent employment opportunities for specific vulnerable groups, such as disabled people."}, {"bbox": [114, 1031, 1076, 1180], "category": "Text", "text": "One of the priorities of this strategy is precisely to strengthen the services provided by the MTPE⁸ for the formalization of employees and businesses and to support the labour inspection agency, “SUNAFIL” in its sanctioning and preventive functions. Transiting the labor market towards more formal and decent jobs is the objective of the strategy; formalizing 750.000 more people by 2030 is the target (out of 13,4 million of undeclared workers)."}, {"bbox": [114, 1197, 1076, 1378], "category": "Text", "text": "**The National Productivity and Competitiveness Plan 2024 – 2023** of the Ministry of Finance and Economics (MEF) is a prioritized road map aimed at unlocking infrastructure and social investment, with detailed actions that engage multi-sectorial efforts amongst both Ministries, the private sector and civil society. One of the priorities of the plan is to create the conditions for a dynamic and competitive labor market, creating incentives, simplifying norms and procedures, providing vulnerable self-employed with dedicated services and strengthening the sanctioning role of the labor inspectors."}, {"bbox": [114, 1436, 1076, 1464], "category": "Text", "text": "**The National Strategy for women entrepreneurs** of the Ministry of Women and Vulnerable People"}, {"bbox": [85, 1500, 567, 1525], "category": "Footnote", "text": "⁶ Ministry of Labour and Employment Promotion, 2021"}, {"bbox": [85, 1525, 1143, 1598], "category": "Footnote", "text": "⁷ The implementation of such a strategy would require an inter-ministerial dialogue, led by the Ministry of Labor and Employment Promotion and a consensus -building instance where agreements with the social partners (employees, employers) are negotiated and leveraged."}, {"bbox": [85, 1597, 1143, 1647], "category": "Footnote", "text": "⁸ The centers for simplifying processes for formalization of businesses and workers “Centros Formaliza Peru”, and the centers for employment intermediation “Centros de Empleo”"}, {"bbox": [1035, 1680, 1143, 1705], "category": "Page-footer", "text": "Page 6 of 29"}]