Global Labour Market Recovery Slow; India An Exception: ILO Report

GLOBAL LABOUR MARKET RECOVERY SLOW; INDIA AN EXCEPTION: ILO REPORT

Introduction

• The International Labour Organization (ILO) released its report, World Employment and Social Outlook: Trends 2025, highlighting the challenges in the global labour market as economies struggle to recover from the COVID-19 pandemic.
• The report paints a mixed picture of the world’s recovery, but it notes India’s exceptional growth in labour and economic performance.

KEY HIGHLIGHTS

• Global Economic Growth and Labour Markets:
  • The global economy is growing more slowly, with economic growth expected to be 3.2% in 2024, slightly down from 3.6% in 2022.
  • Despite this slow growth, global employment grew in line with the growing labour force in 2024, keeping the unemployment rate steady at 5%.
  • However, youth unemployment remained high at 12.6%, showing limited improvement.
• India’s Economic and Labour Market Performance:
  • India stands out as a major driver of growth in Southern Asia. The report notes that India’s GDP growth is expected to be 6.9% in 2024 and 6.4% in 2025, one of the fastest in the world.
  • India’s growth is driven by strong domestic demand, public investment, and eased monetary policies.
  • This growth is crucial for the overall performance of the Southern Asia region, which is forecasted to grow by 6.2% in 2024 and 5.8% in 2025.
  • A significant factor behind India’s labour market recovery is the increased female participation in the workforce.
• Challenges Facing Global Labour Markets:
  • Geopolitical tensions, the costs of climate change, and debt issues are putting pressure on global labour markets, slowing recovery.
  • Informal work and working poverty have returned to pre-pandemic levels, especially in low-income countries, which are struggling to create decent jobs.
  • Even though inflation has decreased globally, it remains high, reducing the value of wages in many countries.
• Global Jobs Gap:
  • The global jobs gap—the number of people who want to work but cannot find a job—reached a record 402 million in 2024. This includes:
    • 186 million unemployed people
    • 137 million temporarily unavailable to work
    • 79 million discouraged workers who have stopped looking for work.
• Gender Inequality in the Workforce:
  • The report notes that while labour force participation has increased in high-income countries, especially among older workers and women, the gender gap remains significant. Women are still underrepresented in the workforce, limiting progress in improving living standards.
  • However, India has seen an increase in female workforce participation, helping drive economic growth.

RECOMMENDATIONS FOR IMPROVING GLOBAL MARKETS

The ILO calls for urgent action to address these challenges:

• Boost Productivity: Member countries should invest in skills training, education, and infrastructure to support economic growth and job creation.
• Expand Social Protection: Governments need to provide better social security and safe working conditions to reduce inequality.
• Effective Use of Private Funds: Low-income countries can utilize remittances and diaspora funds to support local development.
• Tackling Climate Impact and Social Cohesion: According to Gilbert F. Houngbo, ILO Director-General, tackling labour market challenges is essential to avoid further strain on social cohesion and to address the impacts of climate change and debt. The goal is to create a fairer, more sustainable future.

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