The UN labour agency has issued a new report, World Employment and Social Outlook: Trends 2025, which reveals that the global economy is slowing down. This is causing problems in the job market and hindering progress in recovering from previous economic crises.
In 2024, global employment kept up with the growing labour force, resulting in a stable unemployment rate similar to the previous year.
However, young people continue to face high unemployment rates with little sign of improvement.
The number of informal workers and those classified as working poor has returned to pre-pandemic levels, and low-income countries are struggling to create decent jobs for their citizens.
The global economy continued to grow at a moderate pace in 2024, but this growth is expected to slow down in 2025 and the foreseeable future.
Despite a decrease in inflation rates, the economy has not fully recovered from the loss of earnings caused by the pandemic, partly due to weak employment growth.
The report also notes that real wages have only increased in some advanced economies, while most countries are still trying to bounce back from previous crises.
Participation in the labour force has decreased in low-income countries, but has increased in high-income countries, particularly among older workers and women.
However, there is still a significant gender gap in workforce participation, which hinders progress in improving living standards.
The participation of young men in the labour force has decreased significantly, leaving them vulnerable to economic challenges. This trend is prevalent in low-income countries, but is also seen worldwide among young women.
The global jobs gap, which represents the number of people who want to work but do not have a job, reached 402 million in 2024. This includes 186 million unemployed individuals, 137 million temporarily unavailable to work, and 79 million discouraged workers who have given up looking for jobs.
While the labour force participation rate is gradually declining, the jobs gap has continued to decrease since before the pandemic, but is expected to stabilize in the next two years.
The report suggests that there is potential for job growth in the green energy and digital technology sectors.
Renewable energy jobs have increased to 16.2 million globally, with a significant portion located in East Asia. Digital technologies also offer opportunities for job growth, but many countries lack the necessary infrastructure and skills to fully benefit from these advancements.
The Director-General of the ILO, Gilbert Houngbo, emphasized the urgent need for action in response to the report’s findings.
“Decent work and productive employment are crucial for achieving social justice and the Sustainable Development Goals (SDGs),” he stated.
The report’s recommendations include investing in skills training to boost productivity, expanding social protection, and promoting the use of private funds to support local development in low-income countries.
“To prevent further strain on social cohesion, worsening climate impacts, and increasing debt, we must take action now to address labour market challenges and create a fairer, more sustainable future,” concluded Mr. Houngbo.