The Director-General of the International Labour Organization (ILO), Gilbert F. Houngbo, has raised concerns that while global labour markets appear broadly stable, millions of workers remain stuck in deep structural challenges that threaten economic resilience and social cohesion.
Speaking at the ongoing International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, D.C., Houngbo highlighted that the real crisis in today’s labour market is not unemployment levels, but the quality of jobs and the pace of structural transformation.
According to him, an estimated 284 million workers worldwide continue to live in extreme poverty, while about 2.1 billion people—nearly 58 per cent of the global workforce—are engaged in informal employment.
Despite steady unemployment rates and continued economic growth into early 2026, Houngbo described global labour markets as fragile. He attributed this vulnerability to rising sovereign debt, shrinking fiscal space, and increasing global uncertainty, all of which limit governments’ capacity to support workers and strengthen labour systems.
He further warned that the ongoing conflict in the Middle East is intensifying existing economic vulnerabilities. Houngbo noted that the crisis is not an isolated shock but one that is compounding pre-existing weaknesses in the global economy, raising the risk of more severe and long-lasting impacts on employment and livelihoods.
Countries directly affected by the conflict, he said, are facing infrastructure destruction, business disruptions, displacement, and heightened insecurity—factors that are significantly undermining jobs and incomes. Beyond the region, the ripple effects are being felt through disruptions in energy markets, trade flows, and supply chains, with adverse consequences for wages, working conditions, and employment across other economies.
Houngbo stressed that low-income households, informal workers, migrant labourers, and small businesses are bearing the brunt of these disruptions. He warned that the situation could heighten risks of child labour, forced labour, and other violations of decent work standards.
Calling for urgent action, the ILO chief urged governments to implement policies that protect workers and reinforce labour markets. He emphasised the importance of strengthening social protection systems, supporting livelihoods, and deploying active labour market policies to prevent vulnerable populations from falling deeper into economic insecurity.
He also advised governments to preserve fiscal space for social protection while prioritising job creation and income security. In conflict-affected regions, Houngbo called for recovery and reconstruction strategies that integrate decent work principles, including labour rights, fair wages, and safe working conditions.
Houngbo cautioned that economic growth without the creation of decent jobs remains a significant global concern. He noted that where informality persists and workers lack security, representation, and protection, societies become increasingly exposed to economic shocks.
“This is why the persistence of decent work deficits is not only an economic concern but also a rights concern,” he said.
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