The International Labour Organisation (ILO) has revised its 2025 global employment forecast, projecting 53 million new jobs, down from 60 million estimated earlier. The updated outlook signals a drop in employment growth from 1.7% to 1.5%, driven by downgraded global GDP expectations, now pegged at 2.8%.
Released in its latest World Employment and Social Outlook (WESO) Update, the ILO’s warning comes as job markets face compounding pressures: cooling economies, intensifying geopolitical tensions, and rapid technological shifts. The report links 84 million jobs across 71 countries directly or indirectly to US consumer demand—56 million of them in the Asia-Pacific, now vulnerable to elevated trade friction. Canada and Mexico hold the highest exposure, with 17.1% of jobs linked to US consumption.
The report also highlights worsening income inequality. The labour income share dropped from 53.0% in 2014 to 52.4% in 2024, translating into US$1 trillion in lost worker earnings globally last year.
Although high-skilled roles are growing, particularly among women, the workforce faces persistent mismatches, nearly one in five workers is over-educated for their role, and only 47.7% hold qualifications aligned with job requirements.
With one in four jobs exposed to generative AI transformation, the ILO calls for urgent investment in social protection, upskilling, and inclusive labour policies to future-proof employment systems.