World Employment and Social Outlook Report 2025

January 17, 2025

The International Labour Organisation (ILO) has released its World Employment and Social Outlook Report for 2025, denoting the ongoing struggles in global labour markets. The report reveals that geopolitical tensions, climate change costs, and unresolved debt issues continue to hinder economic recovery. Despite a slight decrease in the global jobs gap, challenges remain, particularly for low-income countries and vulnerable populations.

Global Jobs Gap

The global jobs gap reached 402 million in 2024. This includes 186 million unemployed, 137 million temporarily unavailable, and 79 million discouraged workers. The gap has narrowed since the pandemic but is expected to stabilise in the coming years.

Unemployment Rates

The global unemployment rate remained steady at 5% in 2024. Youth unemployment is particularly concerning, standing at 12.6%. Many low-income countries struggle to create decent jobs, with informal work returning to pre-pandemic levels.

Labour Force Participation

Labour force participation rates have declined in low-income nations while rising in high-income countries, especially among older workers and women. However, gender gaps persist, limiting economic progress.

NEET Statistics

The rates of young people not in education, employment, or training (NEET) have risen. In low-income countries, young men’s NEET rates increased by 4 percentage points above pre-pandemic levels, affecting 15.8 million young men and 28.2 million young women in 2024.

Economic Growth Trends

Global economic growth slowed to 3.2% in 2024, down from previous years. A similar growth rate is anticipated for 2025, but a gradual deceleration is expected over the medium term.

Real Wages and Inflation

Although inflation has decreased, it remains high, impacting wage values. Real wage increases have been limited to some advanced economies, with many countries still recovering from pandemic effects.

Opportunities in Green and Digital Sectors

Job growth potential exists in green energy and digital technologies. Renewable energy jobs have reached 16.2 million globally, but distribution is uneven. Many countries lack the infrastructure to fully utilise digital advancements.

Recommendations for Action

The ILO calls for increased productivity through skills training, expanded social protection, and effective use of private funds. Low-income countries are encouraged to harness remittances for local development.

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