Labour market trends in 2025 tells us to expect economic fragility - ILO DG Gilbert F. Houngbo
30 July 2025

International Labour Organization (ILO) Director-General, Gilbert F. Houngbo told a G20 Labour and Employment Ministers' Meeting (LEMM) that on the back of shocks and stresses the world economic uncertainty remains high.

Houngbo warned of increased wage inequalities in most emerging economies in the G20 countries. He said informal employment remains a critical challenge in several countries. He also said the labour income share has fallen in almost all G20 countries.

“We also estimate that despite the post pandemic rebound the 2025 labour force participation rate for the G20 will only be 61,5 percent and behind these figures lie some worrying patterns which remind us that barriers to labour market participation continue to undermine social justice for women and youth," he said.

According to ILO DG, what was encouraging was that across G20: “we have seen policy actions that foster equality in the labour market, improved working conditions of paid care-workers, prevention of violence and harassment at work. G20 members are putting commitment to action. And that makes a difference," Houngbo said.

He said despite significant variations between G20 countries the average share of young people not in employment and education and training (NEET) has declined by 20 percent to 17,6 percent. Houngbo said the progress being made is a result of targeted policy initiatives, incentives that encourage employers to hire youth and training programmes that improve youth viability.

Across the G20 there are significantly fewer women participating in the labour market than men with an average G20 labour force participation gap of 18 percent in 2024, Houngbo said.

Delivering a keynote address at the opening of LEMM, he revealed that a staggering 229 million women remain outside of the labour force across the G20 countries. Moreover, he said wage gaps between men and women across intersecting factors – such as migrant status, ethnicity and disability are not only substantial, but they are persistent.

The DG said significant disparities between men and women also extend to young people who are not in employment education and training. He said across the G20 - young women (on average 8,6 percent) are more likely to experience NEET than young men.

“And across the board two third of young people in NEET are inactive. They are disconnected from the labour market. Often invisible to traditional employment services and face complex barriers to entry and a lack of access to information," he said.

He called on G20 countries to deepen their unwavering commitment to social dialogue, forge joint solutions that are equitable and sustainable.

The two-day Labour and Employment Ministers' Meeting started today and is held at Fancourt Hotel and Country Estate in George, Western Cape Province. The theme of the LEMM is: “Living and Working in an Unequal World: Ensuring Decent Work and Decent Lives". It is aligned to South Africa's G20 Presidency theme: “Solidarity, Equality, Sustainability". The meeting ends on Thursday (31 July) with a Minister's declaration.

 

For media enquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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