GENDER-SPECIFIC CHALLENGES OF INFORMAL EMPLOYMENT: THE CASE OF WOMEN IN AZERBAIJAN

ABSTRACT

Informal employment is characterized by the absence of social protection, labor rights, and safe working conditions, often resulting in low wages and productivity. Workers in informal sectors face higher risks of job insecurity and poverty due to limited legal and institutional support. To address these challenges, policies must adopt a cross-sectoral and intersectional approach that acknowledges the diversity among informal workers, including differences shaped by gender, class, ethnicity, and migration status. Informality should be viewed along a continuum, where individuals move between formal and informal employment. Hence, effective policy must facilitate upward mobility by expanding legal protections, access to social security, and skill development opportunities. Given the role of informal labor in global supply chains, international coordination is crucial to ensure labor rights and corporate accountability. A gendered perspective highlights the need to evaluate the quality of women’s work, especially in undervalued sectors like domestic and care work. Policies must address power imbalances by recognizing unpaid care labor, supporting maternity rights, and removing barriers to collective organization and leadership for women.

АННОТАЦИЯ

Неформальная занятость характеризуется отсутствием социальной защиты, трудовых прав и безопасных условий труда, что приводит к низкой оплате и производительности. Работники в неформальном секторе сталкиваются с большей нестабильностью и риском бедности из-за ограниченной правовой и институциональной поддержки. Для решения этих проблем необходимы политики, ориентированные не только на межсекторальный, но и на интерсекциональный подход, учитывающий различия, связанные с полом, классом, этнической принадлежностью и миграционным статусом. Неформальность следует рассматривать как континуум, где работники могут перемещаться между формальной и неформальной занятостью. Эффективные меры должны способствовать социальной мобильности через расширение правовой защиты, доступ к соцобеспечению и развитию навыков. С учетом глобального характера современных рынков труда важна международная координация усилий по обеспечению соблюдения трудовых стандартов и корпоративной ответственности. Гендерная перспектива требует оценки не только количества женщин в занятости, но и условий их труда, особенно в таких недооцененных сферах, как уход и домашняя работа. Необходимо признание неоплачиваемого труда, обеспечение материнских прав и устранение барьеров на пути к лидерству и коллективной защите интересов женщин.

Keywords: Informal employment; Gender inequality; Social protection; Decent work.

Ключевые слова: Неформальная занятость; Гендерное неравенство; Социальная защита; Достойный труд.

Introduction

Informal employment is typically marked by a lack of social protection, limited or no labor rights, unsafe or unhealthy working environments, and generally low wages and productivity. Because of these conditions, people working informally are more likely to suffer from significant deficits in decent work standards. They often face job insecurity, poor working conditions, and limited legal or institutional support. This puts them at a much higher risk of experiencing working poverty compared to those in formal employment, where protections, rights, and standards are more likely to be enforced.

Building on this foundation, the emphasis on integrating informal workers into frameworks of decent work requires policies that are not only cross-sectoral but also intersectional. Acknowledging the diverse realities of informal workers—including those shaped by gender, class, ethnicity, and migration status—is crucial for crafting meaningful interventions. These policies must recognize that informal work is not a homogenous category but rather a complex system involving multiple actors and varying degrees of vulnerability and exclusion. [2]

The notion of the informal-formal continuum supports a more fluid understanding of labor markets, where economic units and workers often move between levels of formality rather than making a one-time shift. Therefore, policy efforts must account for this dynamic movement and aim to create pathways for upward mobility within the continuum. This includes expanding legal protections, access to social security, and opportunities for skills development while also supporting the organization and representation of informal workers in decision-making processes.[8]

Moreover, in considering the globalized nature of contemporary labor markets, strategies must be sensitive to international supply chains and their embedded inequalities. Informal labor often forms the hidden backbone of global production networks, yet remains largely invisible and unprotected. Addressing this imbalance requires a coordinated global response that includes labor standards enforcement, corporate accountability, and support for grassroots organizing. [1]

From a gendered lens, this means going beyond merely counting women in employment statistics to critically evaluating the quality and conditions of their work. Women's informal labor, particularly in domestic, agricultural, and care sectors, is frequently undervalued and unregulated. Policies should aim not only to improve economic outcomes but also to transform power relations that perpetuate gendered vulnerabilities. This includes recognizing and legitimizing unpaid care work, ensuring maternity protections, and dismantling barriers to leadership and collective bargaining. [3]

Ultimately, the transition toward decent work must be guided by a vision of inclusive economic development—one that places the dignity, rights, and agency of all workers at the center. This involves not just integrating informal workers into formal structures, but also transforming those structures to reflect the diverse realities and contributions of the informal economy.

In addition, the informal economy is made up of a wide variety of workers, including street vendors, domestic workers, home-based producers, micro-entrepreneurs, unpaid family workers, and casual laborers. Many of these workers, particularly home workers and domestic workers, are often hidden from public view, face long working hours, low wages, and income insecurity, and lack access to support networks.  [6]

Women and girls, especially migrants from rural areas, are disproportionately represented in these roles. While some informal workers have formed associations, the majority remain unorganized and lack collective bargaining power. Strengthening their organization should be a priority for trade unions to enhance their protection and empowerment. In many sub-Saharan African countries, where formal employment is stagnating or shrinking, the informal economy has become the main source of livelihood for the poor and unemployed. As a result, it now employs more people than the formal sector and maintains strong interconnections with it. [4]

Work in the broader economy is understood as existing along a spectrum that ranges from informal to formal employment. As work becomes more formal, it typically reflects stronger regulation, increased access to legal rights, improved social protection, and greater opportunities for collective bargaining. The primary aim is to help more workers transition toward the formal end of this spectrum. This model has been further expanded by envisioning the informal-formal range as a multi-stranded cable, with each strand representing a different sector such as textiles, services, or construction. This perspective brings into focus the connections within commodity chains and the networks of ownership, supply, and distribution. From a gender standpoint, the key priority is to design and implement strategies that integrate job creation, social security, workers' rights, and representation in a way that promotes gender equality and empowers individuals—particularly those working at the most vulnerable points across various sectors of the spectrum. [5]

The recognition that women are differently positioned and impacted by local and global socio-economic and political dynamics is becoming increasingly prominent in discussions on labor. Analyses are paying closer attention to how gender intersects with other social categories such as ethnicity, race, and religion, particularly in the context of shifting global and domestic production systems and evolving patterns of social inclusion and exclusion.  [2]

Many existing studies that explore the relationship between gender and social inequality tend to focus narrowly on intersections like gender and class, or gender, class, and race. This limited scope often overlooks other critical dimensions such as sexuality and age. While some literature—especially concerning Latin America—discusses shifts in family structures, much of the discourse still assumes traditional family models. As a result, the realities of diverse and non-normative family arrangements, which are increasingly common in many parts of the world, remain underexamined. [10]

Additionally, when considering social protection from a gender perspective, it is emphasized that solidarity among women workers cannot be taken for granted. For instance, in countries with pronounced class divisions, such as some African nations, women in lower-income informal roles may find themselves at a disadvantage compared to those in more stable market positions. This points to the need for a nuanced understanding of the conditions under which women in informal work settings choose to collaborate or compete. [7]

The distinction between public and private roles in terms of male and female economic activity is clearly visible. Men’s paid work is widely valued, and the idea of the man as the primary breadwinner is strongly accepted across all age groups, by both men and women. In society, men are generally expected to be employed. One woman in a focus group expressed that a man must work, provide for the household, and take care of the family, while women are not necessarily expected to work. Similarly, a male participant stated that it is a man's duty to bring money into the home, and money earned by a woman is often seen as insignificant, which can lead to conflicts within the family. However, the challenges brought about by the transition economy and increasing poverty have made it necessary for women to participate in economic activity.

Expert opinions collected during this study suggest that Azerbaijani society is gradually beginning to recognize the economic value of unpaid housework. This growing awareness could lead to a shift in public attitudes toward women’s labor, potentially improving its social value and status. Women often juggle multiple roles—managing the home, caring for children, and supporting elderly family members. To be effective in the workforce, women rely heavily on support systems such as schools, daycare centers, social services, and special programs that assist working women and their families within their communities. [11]

Most respondents in the study drew a clear line between “male” and “female” jobs. Lighter occupations such as teaching and healthcare were largely considered women’s roles by both men and women. In contrast, more physically demanding or “heavy” jobs—like construction, factory work, engineering, and police duties—were seen as male roles. One male respondent commented that men and women are different in terms of the jobs they can do, with difficult, physically demanding work being designated for men and sectors like education and healthcare more suitable for women.

Methodology

Women are often seen as the indirect victims of unemployment, with the belief that their hardships stem mainly from their husbands losing their jobs. This perception is linked not only to women's economic dependence on men, who are viewed as the heads of households, but also to the widespread recognition—by both men and women—that women’s housework is a legitimate form of labor. For instance, a resident from the village of Gadali in Agsu District remarked that women stay home to manage household tasks and care for children, so unemployment does not directly affect them. Another male participant echoed this view, stating that since women are at home all day managing domestic responsibilities, unemployment has little impact on them.

These comments reflect a broader belief that unemployment is a temporary situation rather than a serious disruption to livelihood. This perspective likely has roots in the socialist era, when employment was mandatory and unemployment was considered a brief pause between jobs, not a lasting social issue.

However, not everyone shares this view. Some men and women, particularly female participants in focus groups, pointed out that unemployment can affect women even more severely. They emphasized that women are the ones who must respond to the everyday needs of their children. A woman from Guba explained that unemployment can lead to tension between spouses. While the man leaves the house, the woman is left at home to care for the children. When the children ask for food, soap, or other basic necessities, she is the one who faces the stress of not being able to provide them.

Chart. Female labor force participation rate in Azerbaijan

Source: Chart prepared by the author based on data from the World Bank website

The chart shows the labor force participation rate of females aged 15 to 64 from 2010 to 2024, based on modeled ILO estimates. In 2010, the participation rate was approximately 64.7 percent. This figure gradually declined to around 64.1 percent by 2013, reflecting a decrease of 0.6 percentage points or about 0.93 percent over three years. From 2014 onward, the trend shifted upwards, with the rate steadily rising and reaching a peak of 69.9 percent in 2020. This increase represents a gain of 5.8 percentage points or approximately 9.05 percent compared to the 2013 level. However, in 2021, there was a sharp decline to 65.3 percent, which marks a decrease of 4.6 percentage points or roughly 6.58 percent from the previous year, likely due to the impacts of the COVID-19 pandemic. The rate recovered in 2022, climbing to 68.4 percent, which was an increase of 3.1 percentage points or about 4.75 percent from the 2021 low. In the years following, there was a slight decline, with the participation rate dropping to 68.1 percent in 2023 and further to 67.8 percent in 2024. This represents a total decrease of 0.6 percentage points or approximately 0.88 percent over two years. Overall, the chart illustrates a long-term upward trend in female labor force participation, interrupted by a temporary dip during the pandemic and a modest decline in the most recent years.

Chart. Labor force participation rate for ages 15-24

Source: Chart prepared by the author based on data from the World Bank website

The chart shows the labor force participation rate for females aged 15 to 24 from 2010 to 2024, based on modeled ILO estimates. In 2010, the rate was approximately 42 percent. It then declined significantly to around 32 percent by 2012, marking a decrease of 10 percentage points or about 23.8 percent over two years. From 2013 onward, the rate began to gradually recover, increasing to about 44 percent by 2020. This represents a rise of approximately 12 percentage points or around 37.5 percent compared to the 2012 low point. However, in 2021, the participation rate dropped again to roughly 39 percent, a decrease of about 5 percentage points or 11.4 percent. Since 2021, the rate has remained relatively stable, fluctuating slightly but staying close to 39 percent through to 2024. Overall, the chart reveals an initial sharp decline, a steady recovery leading up to 2020, followed by a moderate drop and a period of stability in recent years.

Chart. Labor force participation rate for ages 15-24

Source: Chart prepared by the author based on data from the World Bank website.

The chart shows the percentage of women in the total labor force from 2010 to 2024. In 2010, women made up approximately 52.8 percent of the total labor force. Over the following years, this share steadily declined. By 2013, the rate had fallen to about 51.2 percent, representing a decrease of 1.6 percentage points or roughly 3 percent. Between 2013 and 2015, the decline slowed, and the rate stabilized around 51.1 percent. However, from 2016 onward, the share of women in the labor force dropped more noticeably, reaching approximately 50.1 percent by 2019. This marks a decline of about 1 percentage point or nearly 2 percent over three years. In 2020 and 2021, the rate remained almost unchanged, hovering around 50.1 percent, with a slight uptick in 2021. From 2022 to 2024, the trend resumed its downward path, and by 2024, the female share of the labor force fell to around 49.7 percent. Overall, the chart illustrates a gradual but steady decline in women’s share of the labor force over the 14-year period, with a total decrease of roughly 3.1 percentage points or about 5.9 percent from 2010 to 2024.

Chart. Labor force, female

Source: Chart prepared by the author based on data from the World Bank website.

The chart displays the number of women in the labor force from 2010 to 2024. In 2010, the female labor force stood at around 2.25 million. This number gradually increased each year, reaching approximately 2.3 million in 2013 and surpassing 2.4 million by 2015. The upward trend continued through 2019, with the number peaking at around 2.6 million in 2020. This represents an increase of roughly 350,000 women or about 15.6 percent from 2010 to 2020. However, in 2021, there was a noticeable decline to approximately 2.43 million, which is a decrease of about 6.5 percent compared to the previous year. From 2022 to 2024, the female labor force remained relatively stable, fluctuating slightly around 2.5 million. Overall, the chart reflects a general long-term growth in the female labor force, interrupted by a pandemic-related dip in 2021 and followed by a period of stabilization.

Chart. Unemployment, female

Source: Chart prepared by the author based on data from the World Bank website.

The chart shows the female unemployment rate as a percentage of the female labor force from 2010 to 2025, based on modeled ILO estimates. In 2010, the unemployment rate for women was approximately 6.8 percent. It steadily declined over the next few years, reaching around 5.8 percent by 2014 and remaining relatively stable through 2019. This period reflects an overall decrease of about 1 percentage point or nearly 14.7 percent over nine years. In 2020, the female unemployment rate spiked sharply to about 8.4 percent, marking an increase of 2.6 percentage points or approximately 44.8 percent compared to the previous year. This sudden rise is likely linked to the economic disruptions caused by the COVID-19 pandemic. Following that peak, the rate fell to around 7 percent in 2021 and then stabilized at roughly 6.5 percent from 2022 to 2025. While the rate has not returned to the pre-pandemic low of 2019, it has decreased significantly from its 2020 high. Overall, the chart illustrates a period of gradual improvement, a sharp pandemic-related setback, and a partial recovery in recent years.

Conclusion

In conclusion, the article provides a comprehensive and multidimensional examination of informal employment and its intersection with gendered labor dynamics, highlighting how these challenges are manifested within Azerbaijan's unique socio-economic context

Informal employment globally, including in Azerbaijan, is marked by systemic vulnerabilities such as the absence of social protections, legal rights, and occupational safety. These deficits disproportionately affect women, who are more likely to occupy lower-paid, precarious, and unregulated jobs—especially in care work, domestic services, agriculture, and informal trade. Women’s overrepresentation in such sectors underscores the structural barriers that hinder their full participation in the formal economy and highlights the urgent need for inclusive labor policies.

Azerbaijan presents a unique case. On one hand, the country has made commendable strides in establishing a robust legal and policy framework to ensure gender equality in economic participation. The Constitution of the Republic of Azerbaijan and complementary laws such as the 2006 “Law on Guarantees of Gender Equality” and the 2010 “Law on the Prevention of Domestic Violence” offer a strong foundation for protecting women’s rights. Additionally, Azerbaijan is a signatory to international frameworks such as CEDAW, signaling its commitment to eliminating gender-based discrimination. The country’s Labour Code further reinforces this commitment by ensuring paid maternity leave, job security for pregnant women, and flexible work arrangements for mothers with young or disabled children.

Despite these legal provisions, the reality on the ground reflects persistent gendered inequalities, particularly in private sector engagement. Although women’s labor force participation in Azerbaijan is relatively high (62% of women aged 15+ as of 2016), and the country boasts a higher female-to-male participation ratio than many neighboring nations, women still face significant challenges. These include cultural expectations, the disproportionate burden of unpaid domestic work, workplace harassment, and a lack of access to leadership roles or financial capital for entrepreneurship. Moreover, gendered stereotypes that associate “light” occupations like teaching and healthcare with women, while reserving more “demanding” jobs for men, further entrench occupational segregation and income disparities.

The Azerbaijani government has taken several initiatives in recent years to boost women’s economic empowerment. The “Roadmap for Strategic Development for 2016–2020” and the longer-term vision of “Azerbaijan 2020: Outlook for the Future” recognize human capital—particularly female human capital—as central to sustainable economic development. These strategic plans explicitly call for increased women’s participation in entrepreneurship and private sector growth, including sections dedicated to women entrepreneurs and programs to expand family support infrastructure, such as childcare facilities. For example, following a 2016 presidential decree, the government allocated funds to provide vocational training for unemployed citizens, including over 300 women, thereby contributing to self-employment and skills development.

One notable success is the doubling of women-owned businesses between 2012 and 2017, demonstrating the potential of targeted state support in enabling women’s economic participation. Nonetheless, achieving true gender equality requires more than infrastructure or access—it demands a transformation of societal norms. Many Azerbaijani women still experience informal employment or economic exclusion due to rigid gender roles and familial restrictions. These obstacles mirror global trends but are reinforced by localized sociocultural factors.

In addressing these issues, Azerbaijan’s shift from a state-led, resource-dependent economy to a knowledge-based private sector provides both opportunities and risks. To ensure that this transition is equitable, policies must be intersectional, recognizing the unique challenges faced by rural women, single mothers, and women with disabilities. The informal–formal employment continuum must also be addressed by creating bridges—legal, economic, and social—that facilitate upward mobility, protect rights, and legitimize all forms of work, including unpaid care work.

Ultimately, Azerbaijan holds many of the legal and institutional tools required to foster an inclusive, gender-equal economy. What remains is the consistent and comprehensive implementation of these policies, supported by public awareness campaigns, grassroots organizing, and cross-sector collaboration. As both national data and international models suggest, empowering women is not just a matter of equity—it is an economic imperative. If Azerbaijan can dismantle structural and cultural barriers to women’s full participation, it stands to gain significantly in productivity, social cohesion, and long-term prosperity.

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