Global unemployment remains unchanged, ILO warns about decrease in jobs for youth, women

The recent warning from the International Labour Organization (ILO) regarding unchanged global unemployment and a significant slowdown in the reduction of workers living in extreme poverty presents a critical challenge to global development efforts. The data reveals a stark contrast: between 2015 and 2025, the share of workers in extreme poverty is projected to decline by a mere 3.1 percentage points, settling at 7.9% by 2025. This pales in comparison to the 15 percentage point decline observed in the preceding decade, highlighting a worrying deceleration in progress.

This slowdown is deeply rooted in a complex interplay of global economic shifts, technological advancements, and geopolitical events. The decade prior to 2015 saw significant gains, partly driven by the Millennium Development Goals (MDGs) push and rapid economic growth in emerging economies, particularly China and India, which lifted millions out of poverty. However, the period post-2015 has been marked by a series of shocks, including the lingering effects of the 2008 global financial crisis, increasing automation, trade tensions, supply chain disruptions, and most recently, the devastating economic impact of the COVID-19 pandemic and subsequent geopolitical conflicts. These factors have constrained job creation, particularly in decent work environments, and exacerbated existing inequalities.

Several key stakeholders are deeply involved in this issue. The **International Labour Organization (ILO)**, as a specialized agency of the United Nations, plays a crucial role in setting international labour standards, promoting decent work, and monitoring global employment trends. Its warnings are based on extensive research and are vital for guiding policy. **National Governments** are primary actors, responsible for formulating and implementing economic and labour policies, investing in education and skill development, and establishing social safety nets. **Employers and Businesses** are critical for job creation and ensuring fair wages and working conditions. **Workers and Trade Unions** advocate for labour rights, better pay, and improved working conditions. Finally, **International Financial Institutions** like the World Bank and IMF, along with other UN agencies, provide financial assistance, policy advice, and coordinate global efforts to achieve sustainable development.

For India, the implications of this global trend are profound. As a country with a vast and rapidly growing young workforce, India faces the monumental task of creating enough decent jobs to harness its demographic dividend. A global slowdown in poverty reduction and job creation, especially for youth and women, directly impacts India's ability to achieve its own development goals. India's economy is characterized by a large informal sector, where workers often lack social security and decent wages, making them highly vulnerable to economic shocks. Stagnant job growth globally could reduce demand for Indian exports and services, further impacting domestic employment. Socially, high youth unemployment and underemployment among women can lead to increased inequality, social unrest, and a failure to fully utilize human potential, hindering overall economic growth and development. Achieving Sustainable Development Goal (SDG) 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth) becomes significantly more challenging in this global environment.

Historically, India has made significant strides in poverty alleviation through various Five-Year Plans and targeted schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), launched in 2005, which provides a legal guarantee for 100 days of wage employment in rural areas. However, the current slowdown necessitates renewed focus. India's Constitution, particularly the **Directive Principles of State Policy (DPSP)**, provides a framework for such efforts. **Article 38** mandates the state to secure a social order for the promotion of the welfare of the people, minimizing inequalities. **Article 39** directs the state to secure the right to an adequate means of livelihood for all citizens, equal pay for equal work for both men and women, and to ensure that the health and strength of workers are not abused. **Article 41** directs the state to make effective provision for securing the right to work, to education, and to public assistance in cases of unemployment, old age, sickness, and disablement. **Article 43** calls for securing a living wage and conditions of work ensuring a decent standard of life.

Looking ahead, the future implications are critical. Globally, continued stagnation could lead to increased social instability, migration pressures, and a widening gap between developed and developing nations. For India, this calls for a multi-pronged strategy. There is an urgent need to formalize the economy, invest heavily in skill development through initiatives like the Skill India Mission and Pradhan Mantri Kaushal Vikas Yojana (PMKVY), and promote entrepreneurship. Policies under the Atmanirbhar Bharat Abhiyan, focusing on boosting domestic manufacturing and supporting Micro, Small, and Medium Enterprises (MSMEs), are crucial for job creation. Furthermore, targeted interventions for women's labour force participation and addressing gender pay gaps are essential. The rise of green jobs and the digital economy also present new opportunities that India must strategically leverage to ensure inclusive and sustainable growth, preventing a lost generation of youth and reversing the concerning trends for women in the workforce.