World Employment and Social Outlook Trends 2025
The World Employment and Social Outlook (WESO) Trends 2025 report sheds light on global labour market dynamics, highlighting both challenges and opportunities that are shaping the future of work. Here’s a breakdown of its key insights:
Employment Growth and Labour Market Resilience
- Stable Employment Growth: In 2024, global employment grew alongside the expanding labour force, keeping the unemployment rate steady at 5%, the same as in 2023.
- Youth Unemployment Remains a Concern: While overall unemployment rates have stabilized, youth unemployment remains alarmingly high at 12.6%, with little sign of improvement.
- Struggles with Decent Work: Weak employment growth has not significantly addressed decent work deficits, especially in low-income countries where progress has been slow.
Economic Recovery Faces Challenges
- Slowing Economic Growth: Global economic growth decelerated to 3.2% in 2024, slightly down from 3.3% in 2023, and is projected to slow further.
- Geopolitical and Financial Uncertainties: Rising geopolitical tensions, inflation, and unresolved debt risks are creating challenges for labour market stability.
- Participation Rate Declines: Labour force participation has dipped globally, with young people and low-income nations being the most affected.
Gender Disparities Persist
- Wide Gender Gaps: Women continue to participate in the labour market at significantly lower rates than men, hindering both gender equality and economic growth.
- Decline in Male Participation: In low-income countries, fewer young men are entering the workforce, partly due to rising NEET (Not in Employment, Education, or Training) rates.
Stagnant Productivity and Structural Issues
- Productivity Challenges: Global productivity growth has slowed, deepening decent work deficits. Labor productivity is now half a percentage point below pre-pandemic averages.
- Uneven Development: High-productivity hubs in emerging economies aren’t generating widespread benefits, leading to significant regional inequalities.
- Digital and Industrial Limitations: Although new technologies like AI offer promise, only a few countries have the skills and infrastructure to take full advantage of them.
Green Jobs Offer New Opportunities
- Growth in Renewable Energy Employment: Since 2023, renewable energy jobs have risen to 16.2 million worldwide, with Eastern Asia leading the way. However, job creation remains uneven across regions.
- Potential for Broader Green Transitions: Investments in renewable energy and mobility are creating jobs but must be distributed more equitably to benefit developing nations.
Tackling Decent Work Deficits
- Persistent Working Poverty: While working poverty has decreased in some regions, 240 million workers globally still live in extreme poverty. Informality remains a significant issue, with over half the workforce lacking social protections.
- Addressing Structural Gaps: Removing bottlenecks like poor infrastructure, inadequate education, and limited access to quality jobs is critical for progress.
Innovative Strategies for Progress
- Harnessing Remittances: Low-income countries could channel remittances into investments for local economic development, offering a fresh avenue for growth.
- Boosting Productivity: Enhancing education, infrastructure, and industrial policies is key to driving productivity and reducing inequalities.
Conclusion
The WESO Trends 2025 report underscores the pressing need for innovative and inclusive solutions to the complex challenges of today’s labour markets. Policymakers must prioritize creating equitable opportunities, addressing gender disparities, and leveraging green and technological advancements to meet the Sustainable Development Goals (SDGs) by 2030. Ensuring decent work for all remains vital for fostering social justice and building resilient economies worldwide.