A recent report from the International Labour Organization (ILO) has highlighted growing concerns over labour markets as they grapple with geopolitical tensions, the mounting costs of climate change, and unresolved debt issues.
The World Employment and Social Outlook: Trends 2025, released on Thursday, reveals that these factors are hindering global economic recovery and progress in the job sector.
The report outlines that in 2024, global employment grew in tandem with the labour force, keeping unemployment rates stable. However, youth unemployment remains alarmingly high, with little sign of improvement.
The report indicates that informal work and the number of working poor have returned to pre-pandemic levels, with low-income countries facing the greatest difficulty in creating decent employment opportunities for their citizens. This stagnation poses significant recovery challenges.
In 2024, the global economy expanded moderately, but growth slowed as the year progressed. This trend is expected to continue through 2025 and beyond. Despite a decrease in inflation, the economy has not fully recovered from pandemic-related earnings losses, largely due to weak employment growth.
Real wages have seen an uptick in some advanced economies, but many countries are still grappling with the aftermath of past economic crises.
Labour Force Participation Trends
Labour force participation has declined in low-income countries while increasing in high-income nations, particularly among older workers and women. Despite this, gender disparities remain pronounced, with fewer women participating in the workforce, impeding progress in living standards.
The report also notes a sharp decline in participation among young men, many of whom are neither employed nor enrolled in education or training programs (NEET). This trend is particularly severe in low-income countries but is also observed globally among young women.
The global jobs gap — the estimated number of people who want to work but do not have a job — reached 402 million in 2024. This figure includes 186 million unemployed individuals, 137 million temporarily unavailable workers, and 79 million discouraged workers who have stopped seeking employment.
While the jobs gap has followed a downward trend since the pandemic, it is expected to stabilize over the next two years.
Despite these challenges, the report identifies potential job growth in the green energy and digital technology sectors. Renewable energy jobs have surged to 16.2 million worldwide, primarily driven by investments in solar and hydrogen power. However, the distribution of these jobs is uneven, with nearly half located in East Asia.
The digital sector also presents significant opportunities, though many countries lack the necessary infrastructure and skills to fully capitalize on these advancements.
Gilbert Houngbo, the ILO Director-General, emphasized the need for immediate action. He stated, “Decent work and productive employment are essential for achieving social justice and the Sustainable Development Goals (SDGs).”
The report recommends boosting productivity through investments in skills training, expanding social protection, and encouraging private funding for local development in low-income countries. Houngbo concluded, “To avoid exacerbating already strained social cohesion, escalating climate impacts, and surging debt, we must act now to tackle labour market challenges and create a fairer, more sustainable future.”
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