Informal workers: A path to inclusive growth and prosperity

The informal economy in the Philippines is a vibrant and industrious community, forming a crucial but often overlooked cornerstone of the national economy. This sector, bustling with street vendors, jeepney drivers, and agricultural workers, is a testament to hard work and resilience. Their potential to substantially boost productivity and economic growth is enormous, but it remains underutilized due to a lack of formal recognition and support from the government.

Operating outside the formal employment framework, the informal sector is a significant contributor to the national revenue system, primarily through indirect taxes such as the Value-Added Tax (VAT) on goods and services. This contribution underscores their role as a critical economic force. If adequately nurtured and formally recognized, these workers have the capacity to thrive, enhancing their success and boosting their contributions to national development.

Angkas, a pioneering ride-hailing service in the Philippines, exemplifies the latent potential within the informal sector. Our experience has shown that with the right blend of technology, supportive policy, and political will, informal workers can successfully integrate into the formal economy. This integration not only enhances their economic stability and prosperity but also showcases their capacity to become a substantial part of the nation’s economic framework.

A pivotal moment in this journey was the recognition of Angkas bikers by PAG-IBIG, a government agency responsible for housing loans. This landmark recognition marks the transition of these workers from the economic periphery to becoming active contributors and beneficiaries of government programs. For many in the informal sector, the dream of homeownership was unattainable until this point. This achievement, without additional government expenditure, demonstrates how strategic policy and recognition can foster thriving industries.

Our initiatives at Angkas have promoted entrepreneurship, increased earnings, and created stable incomes for our bikers. We have effectively bridged them to the formal financial sector, enabling access to essential benefits such as housing loans from