What is economic exclusion:

Economic exclusion is a multidimensional process in which particular groups are prevented from
participating fully and equally in the economic life of their city or metropolitan area. It occurs when
people experience acute economic disadvantage over an extended time and results in an inability to
improve one’s economic circumstances or enable one’s children to escape them.

We use the word “exclusion” to call attention to the actions of private and public institutions and
structural forces that perpetuate disadvantage and privilege. Economic exclusion differs from income
or wealth inequalities, which can result from and are symptoms of exclusion. Communities of colour,
immigrants and refugees, and women are particularly affected by exclusion.

1. Labor market exclusion makes it hard to get a job because of discrimination or the changing
structure of the labour market. Exclusion from the labour market is likely to increase in the future as
employers in the growing knowledge economy seek skills that vulnerable workers do not have.
2. Poor-quality jobs have stagnant low-end wages and unpredictable hours, lack job security, and offer
limited-to-no-career pathways. Poor job quality is widespread and growing across high-income
countries, and globalization and technological advances may further erode wages and job security at
the bottom.
3. Economic vulnerability is exposure to financial risks. Economically vulnerable households lack
assets to protect themselves from financial emergencies, such as a job loss or a health crisis. And the
social safety nets that should support these households are inadequate or have weakened in recent years.
4. Isolation from opportunity occurs when low-income people and minorities live in neighbourhoods
without access to jobs, good schools, health care facilities, and public spaces. Economic segregation,
where the rich and poor increasingly live in separate neighbourhoods, appears to be on the rise in most
large cities.

Factors:
Limited Access to Education: Lack of access to quality education can hinder an individual's ability to
acquire the skills and knowledge necessary to participate in the workforce and access better economic
opportunities.

Discrimination and Bias: Discrimination based on factors such as race, gender, ethnicity, religion, or
disability can lead to unequal treatment in employment, housing, and financial services, resulting in
economic exclusion.

Income Disparities: When there is a significant income gap between different segments of the
population, it can result in economic exclusion for those with lower incomes, limiting their ability to
afford basic necessities and access important services.

Geographic Barriers: Economic opportunities are often concentrated in urban areas, which can
exclude people living in rural or remote areas from accessing jobs, education, and essential services.
Limited Access to Financial Services: Some individuals may lack access to basic financial services
like banking, credit, or insurance, which can limit their ability to save, invest, or protect themselves
financially.

Lack of Social Safety Nets: Inadequate social safety nets or welfare programs can leave vulnerable
individuals and families without a safety net, making them more susceptible to economic shocks and
exclusion.

Age Discrimination: Older individuals may face age discrimination in the workplace, making it
challenging for them to secure and maintain employment, leading to economic exclusion.

Lack of Access to Healthcare: Poor health or lack of access to healthcare services can limit an
individual's ability to work, resulting in economic exclusion.

Exclusion from Decision-Making: Being excluded from economic and policy decision-making
processes can lead to policies and practices that perpetuate economic exclusion for certain groups.

Preventive Measures:

Anti-Discrimination Laws: Enforce and strengthen anti-discrimination laws that protect individuals
from discrimination based on factors such as race, gender, age, disability, religion, sexual orientation,
and nationality. These laws should apply in employment, housing, and financial services.
Equal Pay and Employment Practices: Promote pay equity by ensuring that individuals are paid fairly
for equal work. Encourage diverse and inclusive hiring practices that prioritize merit and qualifications
over biases.
Accessible Education: Invest in accessible and quality education for all, from early childhood to higher
education. Address educational disparities by providing resources and support to disadvantaged
students.
Skills Training and Lifelong Learning: Offer skills training and lifelong learning opportunities to help
individuals adapt to changing job markets and acquire new skills that are in demand.
Affordable Healthcare: Ensure access to affordable healthcare and preventive services to help
individuals maintain good health and reduce financial burdens related to medical expenses.
Financial Inclusion: Promote financial inclusion by expanding access to banking and financial
services, particularly in underserved communities. Encourage financial literacy programs to empower
individuals to make informed financial decisions.
Social Safety Nets: Strengthen social safety nets, including unemployment benefits, food assistance,
and housing support, to provide a safety net for those facing economic hardship.
Support for Small Businesses: Facilitate access to capital and resources for small businesses,
particularly those owned by underrepresented groups. Provide mentorship and training programs for
entrepreneurs.
Digital Inclusion: Bridge digital divides by ensuring access to affordable internet and digital devices,
especially in rural and low-income areas. Promote digital literacy and skills training.
Affordable Housing: Implement policies to increase affordable housing options and combat
discriminatory housing practices. Address homelessness and housing instability.
Fair Labor Practices: Enforce fair labor practices, including minimum wage laws and worker
protection regulations. Advocate for workers' rights and collective bargaining.
Inclusive Economic Development: Promote inclusive economic development strategies that prioritize
the economic well-being of all community members, including those in historically marginalized areas.
Entrepreneurship Support: Provide resources and support for aspiring entrepreneurs, including
access to business loans, incubators, and business development services.
Age-Inclusive Employment: Combat age discrimination in the workplace and promote age-inclusive
hiring and retention practices.
Integration of Immigrants and Refugees: Support the economic integration of immigrants and
refugees by recognizing foreign qualifications, providing language training, and addressing
discriminatory practices.
Community Engagement: Engage communities in the decision-making process to ensure that policies
and initiatives are tailored to their specific needs and concerns.
Data Collection and Monitoring: Collect and analyse data on economic disparities to identify trends
and assess the effectiveness of policies aimed at preventing economic exclusion.