World Employment and Social Outlook: Trends 2025 report

20 Jan 2025

World Employment and Social Outlook: Trends 2025 report

The International Labour Organization’s (ILO) published the World Employment and Social Outlook: Trends 2025 report.

  • It provides an in-depth analysis of global labor market trends, highlighting challenges such as slowing economic recovery, persistent youth unemployment, and widening global jobs gaps.

Key Points of the Report

  • Global Unemployment Stability
    • The global unemployment rate remained steady at a historical low of 5% in 2024.
    • It is projected to maintain this level through 2025, indicating a plateau in job creation.
  • Youth Unemployment Concerns:
    • Despite overall stability, youth unemployment remains high, with rates of more than 12% for young men and women.
    • It reflects systemic barriers to decent employment for younger demographics.
  • Economic Growth Slowdown:
    • The global economy experienced a slowdown from 3.3% to 3.2% in 2024, with a gradual deceleration expected to limit job creation.
  • Policy Recommendations:
    • ILO Director-General Gilbert Houngbo emphasizes the need for new approaches to social justice.
    • He advocated for investments in education and leveraging migrant remittances to stimulate job creation and development in lower-income countries.

Challenges highlighted by the report

  • Geopolitical tensions, the rising costs of climate change and unresolved debt issues are putting labour markets under pressure.
  • Around 402.4 million jobs were missing in 2024, an increase of around 2.3 million from the previous year.  This includes people who have stopped searching for a job because of discouragement.
  • Informal employment and working poverty have reverted to pre-pandemic conditions, with low-income nations encountering the greatest challenges in generating adequate jobs.
  • While employment in sub-Saharan Africa is increasing more rapidly than unemployment, a majority of workers are not engaged in productive and decent jobs.

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About ILO (International Labour Organization)

  • Headquarters and Establishment: The International Labour Organization (ILO) is headquartered in Geneva, Switzerland
  • It was established in 1919 as part of the Treaty of Versailles to promote social justice and improve labor conditions globally.
  • Membership: The ILO has 187 member states, including India, which was a founding member. It is the first and only tripartite UN agency, involving representatives from governments, employers, and workers to ensure balanced decision-making.
  • Major Conventions: The ILO has adopted 190 conventions, including:
    • Convention No. 87 (1948): Freedom of Association and Protection of the Right to Organize.
    • Convention No. 98 (1949): Right to Organize and Collective Bargaining.
    • Convention No. 138 (1973): Minimum Age for Employment.
    • Convention No. 182 (1999): Elimination of the Worst Forms of Child Labor.
  • Major Reports:
    • World Employment and Social Outlook (WESO): Tracks global employment trends.
    • Global Wage Report: Analyzes trends in wages and income inequality.
    • ILO Monitor: Examines the impact of crises, such as COVID-19, on labor markets.
  • Significance:
    • The ILO sets international labor standards, promotes decent work, and supports the implementation of the Sustainable Development Goals (SDGs), particularly Goal 8: Decent Work and Economic Growth. 
  • It was awarded the Nobel Peace Prize in 1969 for its efforts in promoting peace through social justice.
  • Tripartite Structure
    • The ILO operates on a tripartite structure, involving representatives from governments, employers, and workers, ensuring a balanced approach in policy-making and labor governance.

Functions of ILO

  • Promotion of Social Justice:
    • The ILO works towards achieving social justice by promoting decent work for all.
  • Core Labour Standards:
    • The ILO sets core labor standards that include the elimination of forced labor, child labor, and discrimination in employment.
  • Impact on Global Labor Policies
    • The ILO plays a critical role in shaping global labor policies by producing influential reports, such as the World Employment and Social Outlook.
  • Advocacy for Sustainable Employment:
    • The ILO advocates for inclusive and sustainable employment policies, emphasizing decent work opportunities for youth, women, and marginalized groups.

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