Latest news with #WorldEmploymentandSocialOutlook
Fibre2Fashion
19 hours ago
- Business
- Fibre2Fashion
ILO cuts projection in 2025 global employment growth from 1.7% to 1.5%
The International Labour Organisation (ILO) recently revised its global employment forecast for 2025, projecting the creation of 53 million jobs instead of 60 million estimated earlier. This translates into a reduction in global employment growth from 1.7 per cent to 1.5 per cent this year. ILO recently revised its global employment forecast for 2025, projecting the creation of 53 million jobs instead of 60 million estimated earlier, translating into a reduction in global employment growth from 1.7 per cent to 1.5 per cent. Nearly 84 million jobs across 71 countries tied to US consumer demand are now increasingly at risk of disruption due to elevated trade tensions, ILO said. The drop—the equivalent of around 7 million fewer additional jobs—reflects a downgraded global economic outlook, as gross domestic product (GDP) growth is expected at 2.8 per cent—down from a previous projection of 3.2 per cent. ILO's latest employment estimates, issued in its new World Employment and Social Outlook (WESO) Update, are based on economic growth projections from the recently released International Monetary Fund's (IMF) April 2025 World Economic Outlook. In addition, the ILO estimates that close to 84 million jobs across 71 countries are directly or indirectly tied to US consumer demand. These jobs—and the incomes they support—are now increasingly at risk of disruption due to elevated trade tensions, an ILO release said. The Asia-Pacific region is where most of these jobs—56 million—are concentrated. Canada and Mexico, however, have the highest share of jobs—17.1 per cent—that are exposed. 'We know that the global economy is growing at a slower pace than we had anticipated it would. Our report now tells us that if geopolitical tensions and trade disruptions continue, and if we do not address fundamental questions that are reshaping the world of work, then they will most certainly have negative ripple effects on labour markets worldwide,' said ILO director general Gilbert F Houngbo. The report also highlights troubling trends in income distribution. The labour income share—which is the proportion of GDP going to workers—fell globally from 53 per cent in 2014 to 52.4 per cent in 2024. Africa and the Americas saw the largest declines. Had this share remained unchanged, labour income globally would have been $1 trillion higher in 2024, or $290 more per worker in constant purchasing power terms. This erosion in the share of global income going to workers puts upward pressure on inequality and highlights a disconnect between economic growth and worker compensation, ILO noted. The report points to a shift in employment towards high-skilled jobs. Women are leading this trend. Between 2013 and 2023, the share of women employed in high-skilled occupations rose from 21.2 to 23.2 per cent, while the proportion of men in high-skilled occupations was around 18 per cent in 2023. Yet occupational segregation persists, with women underrepresented in sectors such as construction and overrepresented in clerical and caregiving roles. And while educational attainment continues to rise worldwide, the labour market remains characterised by significant educational mismatches, ILO said. The report also addresses the effects of new technologies on the world of work. It finds that nearly one in four workers may find their jobs transformed by generative artificial intelligence (AI). Fibre2Fashion News Desk (DS)
Express Tribune
3 days ago
- Business
- Express Tribune
ILO slashes 2025 job forecast by 7 million
Listen to article The International Labour Organisation (ILO) has downgraded its global employment forecast for 2025, projecting 53 million new jobs instead of 60 million. This revision lowers expected employment growth from 1.7% to 1.5%, reflecting a weakening global economic outlook. The ILO's latest World Employment and Social Outlook (WESO) Update is based on the International Monetary Fund (IMF)'s April 2025 World Economic Outlook, which now anticipates global GDP growth at 2.8%, down from 3.2%. The report estimates that 84 million jobs across 71 countries are tied to US consumer demand. These jobs are increasingly vulnerable due to intensifying trade tensions, especially in the Asia-Pacific, which holds 56 million of them. Canada and Mexico face the highest exposure, with 17.1% of their jobs linked to the US. ILO Director-General Gilbert F Houngbo warned of potential ripple effects if geopolitical tensions persist. The report also reveals a decline in labour's share of global income — from 53.0% in 2014 to 52.4% in 2024 — resulting in a $1 trillion loss in worker earnings.
Time of India
3 days ago
- Business
- Time of India
ILO lowers employment generation forecast for 2025 to 53 million from 60 million projected earlier
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The International Labour Organization ILO ), on Wednesday, revised down its global employment forecast for 2025 to 53 million jobs as against earlier estimates of estimated 60 million jobs created worldwide this year following a downward revision in economic growth.'This translates into a reduction in global employment growth from 1.7% to 1.5% this year.' ILO said in its World Employment and Social Outlook (WESO) Update released on Wednesday.'The drop, which is the equivalent of around seven million fewer additional jobs, reflects a downgraded global economic outlook, as GDP growth is expected at 2.8%, down from a previous projection of 3.2%,' it addition, the ILO estimates that close to 84 million jobs across 71 countries are directly or indirectly tied to US consumer demand and are at risk.'These jobs and the incomes they support are now increasingly at risk of disruption due to elevated trade tensions,' it said, adding 56 million of these jobs are concentrated in the Asia-Pacific and Mexico, however, have the highest share of jobs, 17.1%, that are exposed.'We know that the global economy is growing at a slower pace than we had anticipated it would. Our report now tells us that if geopolitical tensions and trade disruptions continue, and if we do not address fundamental questions that are reshaping the world of work, then they will most certainly have negative ripple effects on labour markets worldwide,' ILO director-general Gilbert F. Houngbo report also highlights troubling trends in income distribution. 'The labour income share , which is the proportion of GDP going to workers, fell globally to 52.4% in 2024 from 53% in 2014 with Africa and the Americas experiencing the largest declines,' it per the report, had this share remained unchanged, labour income globally would have been $1 trillion higher in 2024, or $290 more per worker in constant purchasing power terms.'This erosion in the share of global income going to workers puts upward pressure on inequality and highlights a disconnect between economic growth and worker compensation,' ILO the effects of new technologies on the world of work, the report said that nearly one in four workers may find their jobs transformed by generative AI.'A larger share of jobs in medium-skilled occupations have some degree of exposure, but a greater percentage of jobs in high-skilled occupations have high exposure, whereby existing tasks could potentially be automated by AI,' it said.
Arab News
24-03-2025
- Business
- Arab News
The future of jobs too uncertain to make wrong bets
The future of jobs is an area shrouded in uncertainty, where making the wrong bets could have dire consequences for individuals and, in the long run, entire nations. As societies and economies confront this complex landscape, it is crucial to understand the forces shaping the global labor market so that informed decisions can be made about education, skills development and career paths. The International Labour Organization's recent 'World Employment and Social Outlook: Trends 2025' report paints a sobering picture of the global job market. While the unemployment rate has remained steady at 5 percent, this figure does not reveal the massive disparities across regions and demographics. Youth unemployment, for instance, stands at a worrying 12.6 percent, highlighting the challenges facing new entrants to the workforce. Economic headwinds are further darkening the job market picture. Global growth slowed to 3.2 percent in 2024, down from 3.6 percent in 2022, with expectations of continued deceleration. This slowdown, coupled with geopolitical tensions and rising trade protectionism, is creating a perfect storm of uncertainty for job seekers and employers alike. Technological advancement, often touted as the key to economic growth, presents both opportunities and challenges. The digital revolution is expected to be the most significant trend by 2030, with 60 percent of employers anticipating its impact on their businesses. However, the benefits of this boom are unevenly distributed, deepening existing inequalities. Across the Arab world, where digital readiness varies widely, the need to invest in digital infrastructure and education has never been more pressing. Indeed, countries everywhere that fail to bridge the digital divide will be at risk of being left behind in the global race for talent and innovation. For most of the past century, science, technology, engineering and mathematics, or STEM, was given priority over the arts. However, many STEM graduates are now finding their work automated before they have even had time to rethink their careers. Tasks that once took weeks of coding can now be performed in minutes, leaving many wondering where they can add value. A recent report in The Wall Street Journal noted: 'Nearly one in four US tech jobs posted so far this year are seeking employees with artificial intelligence skills, job listings data show, as companies in nearly every corner of the economy adjust their recruiting pipelines to embrace the technology.' The ongoing global shift toward a greener economy offers a glimmer of hope amid the uncertainty. The renewable energy sector has seen impressive growth, with employment rising to 16.2 million in 2023. For resource-rich countries in the Middle East, this transition presents an opportunity to diversify economies and create sustainable jobs. However, the concentration of green jobs in certain regions — 46 percent of them are located in China — shows that the promise of a fair global distribution of opportunities remains just that. Arab nations must therefore make full use of their natural advantages, such as abundant solar resources, to position themselves as leaders in the green economy. One of the most pressing challenges in the current job market is the growing mismatch between the skills workers possess and those demanded by employers. The rapid pace of technological change is leaving many traditional skill sets obsolete, while creating demand for new, often highly specialized, professionals. Education systems, particularly in developing countries, are struggling to keep pace with these changes. The result is a widening skills gap, or mismatch, that threatens to leave millions of workers behind. In the Arab world, where youth unemployment rates are among the highest globally, addressing this problem is critical to harnessing whatever remains of the region's demographic dividend. Finally, despite decades of progress, significant gender gaps in labor force participation persist. Women's participation remains substantially lower than men's, particularly in low-income countries. This gender disparity amounts to not just a social injustice but a colossal economic opportunity cost. Interestingly, recent research suggests that the underrepresentation of women in certain STEM fields may not be driven by discrimination alone. 'Talented students of both sexes tend to avoid a career in math or science if they can pursue something else … sex differences in the STEM workforce may largely be a product of sex differences in interests and priorities,' said a recent Wall Street Journal essay. Many STEM graduates are now finding their work automated before they have even had time to rethink their careers. Arnab Neil Sengupta On the upside, although market forces have failed to correct the low pay for care work (which is largely carried out by women), a reversal of fortune cannot be ruled out. Put simply, while AI may soon outperform most humans at most STEM tasks, it looks less likely to replace jobs that need a caring human touch usually provided by women. Looking to the future, what is clear is that the nature of work itself is evolving. The combined impact of the rise of remote work, the gig economy and AI-driven automation is altering traditional employment models. The workers of the future will need to be nimble, lifelong learners capable of dealing with multiple career transitions. For policymakers and educational institutions, the challenge is to create systems that make this adaptability easier. This means moving beyond rigid, degree-based models of education toward more flexible approaches that allow for continuous learning and upskilling. By understanding the trends influencing the labor market and making strategic investments in education, technology and sustainable industries, countries can position themselves to thrive in the economy of tomorrow. For the Arab world, with its young, dynamic population and increasing focus on economic diversification, the opportunities are particularly attractive. By eagerly adopting, instead of postponing, digital transformation, embracing the green energy transition and promoting a culture of innovation and entrepreneurship, Arab countries can aim to create a future-proof job market. To sum up, in an age when the future of jobs looks too uncertain to make wrong bets, the safest bet is on the adaptability and resilience of the human spirit. Bold, forward-thinking policies, such as those adopted by Saudi Arabia and the UAE, can prepare workers not just for the jobs of today but also for the careers of tomorrow.
