INTERNATIONAL financial leaders must place decent work and social justice at the heart of their policy agendas to face current geopolitical tensions and trade disruptions that threaten economic development, the director-general of the International Labour Organization (ILO) said.
ILO Director-General Gilbert F. Houngbo said on Tuesday that policies on decent work, including minimum wage systems, collective bargaining agreement and social protection, are central to creating strong labor institutions that would aid in confronting current uncertainties in the global economy.
‘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,’ Houngbo said in a statement.
The ILO chief said that while inequality among countries has narrowed since the early 2000s and more than half of the global population now benefits from social protection, enduring structural issues continue to put these advances at risk.
According to ILO, global employment is expected to grow at only 1.5 percent this year, along with just 53 million new jobs created, lower than the earlier projection of 60 million.
ILO added that about 84 million workers, mostly in Asia and the Pacific, remain highly vulnerable amid ongoing trade uncertainty while informal work continues to dominate, accounting for 58 percent of the global labor force in 2024.
The ILO chief also pointed out that although global output per worker rose by 17.9 percent between 2014 and 2024, the share of labor income fell from 53 percent to 52.4 percent.
‘These trends underscore ongoing challenges in translating economic growth into formal economy and decent employment opportunities,’ said Houngbo.
Houngbo called for a renewed social contract anchored in inclusive dialogue and people-centered policies, saying that the real challenge lies not in choosing between economic growth and social progress but in aligning them through coordinated action.
‘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.’
Houngbo also warned of the disruptive potential of generative artificial intelligence (AI), noting that nearly one in four workers could see their jobs significantly transformed, with women standing to be disproportionately affected.
He said that whether AI adoption results in job displacement or complementarity will depend on how technology is integrated, the decisions made by management and the strength of social dialogue between employers and workers.