In News:

The global economy is slowing down, making it harder for labour markets to recover fully since the outbreak of the COVID 19 pandemic, according to the International Labour Organization’s (ILO) report, World Employment and Social Outlook: Trends 2025, released in Geneva

Global Employment Trends

• Unemployment Rate (2024): Remained steady at 5%.
• Youth Unemployment: High at 12.6%, particularly severe in upper-middle-income countries (16%).
• Global Jobs Gap:
  • 402 million people want work but are jobless (2024):
    • 186 million unemployed
    • 137 million temporarily unavailable
    • 79 million discouraged workers
• NEET Population (2024):
  • 259.1 million globally:
    • 173.3 million young women (28.2%)
    • 85.8 million young men (13.1%)

Economic Growth and Labour Recovery

• Global Growth (2024): 3.2% (↓ from 3.3% in 2023 and 3.6% in 2022)
• Forecast (2025): Similar growth expected, with gradual deceleration ahead.
• Recovery Remains Uneven:
  • High-income countries see rise in labour force participation.
  • Low-income countries (LICs) face challenges creating decent jobs, with informal work returning to pre-pandemic levels.

• India’s GDP Growth:
  • 6.9% in 2024, forecast at 6.4% in 2025
  • Driven by monetary easing, domestic demand, and public investment
• Southern Asia: Growth pegged at 6.2% in 2024, 5.8% in 2025, mainly due to India.
• Labour Participation:
  • Significant increase in female labour force participation, especially in India.

Key Labour Market Challenges

• Geopolitical Tensions
• Climate Change Costs
• Unresolved Debt Issues
  • ~70 countries at risk of debt distress
  • Many LICs spend more on debt servicing than on education/health
• Stagnant Real Wages
  • Post-pandemic wage recovery mostly in advanced economies
• Vulnerable Jobs in Developing Regions
  • Sub-Saharan Africa: 62.6% households live on <USD 3.65/day
  • Employment is mainly informal, lacking security

Green and Digital Transitions

• Green Jobs Growth:
  • Employment in renewables rose from 13.7 million (2022) to 16.2 million (2023)
  • 46% of green energy jobs are in China
• Digital Economy:
  • Offers promise, but infrastructure and skills gap limit benefits in many countries.

ILO Recommendations for Social Justice & SDG 2030 Goals

• Boost Productivity & Job Creation: Invest in skills training, education, and infrastructure
• Expand Social Protection: Better access to social security and safe work conditions
• Leverage Private Capital: LICs should channel remittances and diaspora funds into development
• Structural Transformation: Focus on modern services and manufacturing for quality jobs
• Youth Skill Development: Promote education for emerging sectors like green tech and digital economy
• Global Collaboration: Foster inclusive fiscal and monetary policies for equitable recovery

About ILO

• Established: 1919 | UN Agency
• Members: 187 countries
• Headquarters: Geneva, Switzerland
• Unique Tripartite Structure: Brings together governments, employers, and workers to set labour standards and promote decent work for all.