Gilbert F. Houngbo, Director-General of the International Labour Organization (ILO), has called on international financial leaders to prioritize decent work and social justice in their policy frameworks. Speaking through written statements to the World Bank Group and International Monetary Fund (IMF) Annual Meetings in Washington D.C., Houngbo highlighted the critical role that strong labour institutions play in addressing escalating geopolitical tensions and global trade disruptions.
He underscored that decent work policies—including minimum wage systems, collective bargaining mechanisms, and social protection—are foundational for achieving sustainable and inclusive development. While progress has been made, such as a reduction in inequality between countries since the early 2000s and broader access to social protection, Houngbo cautioned that structural challenges continue to endanger these advances.
The ILO projects global employment growth to slow to 1.5 percent in 2025, with 53 million new jobs expected—down from a previously forecasted 60 million. Trade-related uncertainties are placing approximately 84 million workers, predominantly in Asia and the Pacific, at heightened risk. Informal employment remains dominant, with 58 percent of the global workforce still engaged in informal work as of 2024, revealing ongoing difficulties in converting economic growth into quality employment opportunities.
Despite a 17.9 percent increase in global output per worker from 2014 to 2024, the share of income going to labour declined slightly, from 53.0 percent to 52.4 percent. Houngbo pointed out that maintaining the 2014 labour income share would have resulted in an additional US$1 trillion in global labour income by 2024, translating to US$290 more per worker on average.
To combat wage inequality and low pay, Houngbo reiterated the importance of institutionalized minimum wages and collective bargaining systems. He also addressed the impact of emerging technologies, especially generative AI, on the labour market. ILO estimates suggest that nearly 25 percent of workers could experience significant changes to their roles, with women expected to be disproportionately affected. The ultimate impact of AI, Houngbo stated, will depend on its implementation, managerial choices, and the quality of social dialogue between employers and workers.
In his closing message, Houngbo called for a renewed social contract that aligns economic and social goals through coordinated policy action. He argued that the perceived tension between these objectives can be resolved through synergy, driven by democratic governance, inclusive dialogue, and people-centred policies. Such an approach, he concluded, is essential to building the institutional resilience and political legitimacy needed to sustain long-term progress.
