International unemployment set to carry close to historic low of 5%, ILO says

GENEVA (Reuters) – International unemployment remained regular final yr at an historic low of 5%, the place it’s set to remain in 2025, the Worldwide Labour Group stated in a report on Thursday.

Nevertheless, the Geneva-based physique stated {that a} international financial slowdown from 3.3% to round 3.2% final yr, and a gradual deceleration over the medium time period, will restrict job creation.

“The worldwide economic system continues to broaden at a reasonable fee, however it’s projected to step by step lose steam, stopping a stronger and extra sturdy labour market restoration,” the ILO flagship report on international employment and social traits stated.

The present international unemployment fee of 5% is the bottom in an ILO information collection going again to 1991 and is projected to tick decrease once more in 2026 to 4.9%, the ILO stated.

Nevertheless, some nations and teams are failing to profit from the optimistic development, with younger individuals face a considerably increased unemployment fee of 12.6%, the report stated.

Whereas some European nations have seen unemployment fall in recent times, nations comparable to South Africa reported stubbornly excessive ranges above 30% in 2024, it stated.

ILO Director-Basic Gilbert Houngbo, a former Prime Minister of Togo, referred to as for daring motion to assist deal with boundaries to a thriving labour market.

“The world should embrace new approaches to social justice that generate respectable work,” he stated within the report’s preface.

The 84-page report additionally contains suggestions to spice up job creation by way of funding in training plus a proposal for brand spanking new personal funds from migrants’ remittances despatched again dwelling to spice up improvement in poorer nations.