ILO slashes job forecast, blames U.S. tariffs for economic slowdown
The International Labour Organization (ILO) has downgraded its 2025 global job creation forecast from 60 million to 53 million, citing rising trade tensions and geopolitical instability largely driven by U.S. protectionist policies. In its latest report based on IMF data, the UN agency warned that 84 million jobs across 71 countries—particularly in Canada and Mexico, where 17.1% of employment relies on U.S. demand—face heightened uncertainty due to tariff disputes.
ILO Director-General Gilbert F. Houngbo called the findings “sobering,” noting that labor’s share of global GDP fell 0.6% in 2024, exacerbating income inequality. While high-skilled jobs risk displacement from AI, the report highlighted progress for women, whose representation in such roles rose to 23.3%, up two percentage points since 2013.
Houngbo urged nations to strengthen social protections and invest in skills development, stating, “We must act with urgency to ensure technological change benefits all.” The IMF’s April outlook had similarly flagged trade disruptions as a key drag on growth, projecting a 0.4% slowdown.