A new ILO report – ‘World Employment and Social Outlook: Trends 2025’ – released on Thursday said.
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The report highlighted the slowdown in the global economy. This is affecting the labor market and hampering progress in the recovery from the last economic downturn.
According to the report, global employment growth in 2024 is in line with the labor force, keeping the unemployment rate at the same level as the previous year.
Young people, on the other hand, faced very high unemployment rates with little sign of improvement.
Informal work and people classified as the working poor have returned to pre-pandemic levels, and low-income countries have faced the greatest difficulty in creating decent jobs for their citizens.
Forest restoration challenges
According to Labor’s outlook, in 2024, the global economy continues to expand at a moderate rate, slowing towards the end of the year. This moderate growth is expected to continue through 2025 and into the medium term.
The economy has not fully recovered from the loss of income related to the Covid pandemic, even though inflation has eased. Weak employment growth is also partly responsible for this.
The report says real wages have risen in only a few advanced economies – and most countries are still recovering from the effects of previous crises.
Declining labor force participation
Labor force participation has declined in low-income countries, while it has continued to rise in high-income countries—primarily among older workers and women.
Yet, with fewer women in the workforce, the gender gap remains wide, limiting progress in living standards.
The share of young people has fallen sharply, many of whom are excluded from education, employment or training (NEET) programmes, leaving them vulnerable to economic challenges.
The estimated number of people worldwide who want to work, but are unemployed, will reach 402 million by 2024.
This number includes 18.6 crore unemployed and 13.7 crore people who are temporarily unavailable for work.
This figure also includes 7.9 crore discouraged workers who have stopped looking for work due to discouragement.
New opportunities in green and digital sectors
This study by the International Labor Organization highlights the potential for job growth in green energy and digital technology.
Jobs in the renewable energy sector grew by 16.2 million worldwide, driven by investments in solar and hydrogen energy. However, these operations are unevenly distributed, with about half located in East Asia.
Digital technology is also providing employment opportunities, but the report states that many countries lack the infrastructure and skills to fully benefit from these advances.
The latest solution
ILO Director-General Gilbert Hungbo emphasized the need for urgent action, saying, “Work and productive employment with decent incomes and conditions are essential to achieve social justice and the Sustainable Development Goals (SDGs).”
The report’s recommendations include boosting productivity by investing in skills training, expanding social protection and encouraging the use of private funds to support local development in low-income countries.
“We need to address labor market challenges and achieve more equity,” concludes Gilbert Houngbo, “To create a more sustainable future, we need to act now.”