Global jobs at risk as ILO warns of mounting economic uncertainty

Says 84m workers vulnerable amid trade tensions

By Victor Ahiuma-Young

GENEVA — The International Labour Organization, ILO, has raised alarm over growing economic uncertainty threatening global employment, calling on world financial and economic leaders to prioritize decent work and social justice in their policy frameworks.

In a statement presented to the World Bank Group/International Monetary Fund, IMF, Annual Meetings in Washington D.C., the ILO Director-General, Gilbert F. Houngbo, emphasized that robust labour institutions were vital to navigating rising geopolitical tensions and trade disruptions.

Houngbo warned that without decisive action to strengthen labour systems, millions of workers could face worsening insecurity.

“As uncertainty in the global economy persists with shifting geopolitical tensions and trade disruptions, the importance of building institutions that foster decent work for all could hardly be more critical,” he said.

According to ILO projections, global employment growth is expected to slow to 1.5 per cent in 2025, generating about 53 million new jobs, down from the earlier projection of 60 million.

The report noted that around 84 million workers, mostly in Asia and the Pacific, remain vulnerable due to trade uncertainties, while informal employment continues to dominate — accounting for 58 per cent of the global workforce in 2024.

“These trends underscore ongoing challenges in translating economic growth into formal economy and decent employment opportunities,” Houngbo observed.
The ILO Director General also revealed that while global output per worker grew by 17.9 per cent between 2014 and 2024, the labour income share declined from 53.0 per cent to 52.4 per cent.

“Had the labour income share remained at its 2014 level, global labour income would have been US$1 trillion higher in 2024, and each worker would have earned an additional US$290 on average that year,” he stated.

Houngbo stressed the need to strengthen minimum wage systems and collective bargaining institutions to tackle low pay and growing wage inequality. He argued that decent work policies — including social protection and inclusive dialogue — were essential for achieving sustainable and fair economic growth.

On the future of work, the ILO Director-General highlighted the disruptive potential of generative artificial intelligence (AI), noting that nearly one in four workers could see their jobs significantly transformed — with women disproportionately affected, according to ILO estimates.

“Whether AI adoption ultimately leads to job losses or job complementarity depends on how technology is integrated, management decisions, and — fundamentally — the role of social dialogue between employers and workers in shaping its implementation,” Houngbo explained.

He called for coordinated global policy action under a renewed social contract, emphasizing that economic and social goals must not be viewed as opposing forces.
“The real challenge is not an inherent conflict between economic and social objectives, but rather the need to take coordinated action that transforms this potential dilemma into a dynamic, mutually reinforcing synergy,” he said.

Houngbo reaffirmed the ILO’s commitment to supporting countries in building resilient labour institutions capable of delivering decent work and social justice in an increasingly uncertain global economy.

The post Global jobs at risk as ILO warns of mounting economic uncertainty appeared first on Vanguard News.