ILO Calls for Urgent Action to Build Inclusive Labour Markets Worldwide
The International Labour Organisation (ILO) has renewed calls for coordinated global action to strengthen inclusive labour markets, warning that persistent inequalities continue to undermine progress despite recent improvements in employment conditions worldwide.
The appeal was made by the ILO Director-General, Gilbert F. Houngbo, during the second Global Labour Market Conference (GLMC) held in Riyadh, Saudi Arabia, where policymakers, labour ministers, employers’ groups and worker representatives gathered to deliberate on the future of work in an era of rapid economic and technological change.
Houngbo acknowledged that global labour markets have shown notable resilience in recent years, with historically low unemployment rates recorded in several regions, improved job quality, and a gradual expansion of formal employment.
However, he cautioned that these gains remain uneven and fragile, particularly for women, young people and other vulnerable groups who continue to face systemic barriers to decent work.
According to him, economic growth alone is insufficient if it fails to translate into broad-based opportunities and social justice.
Inclusive labour markets key to sustainable growth
In his address, the ILO Director-General stressed that inclusive labour markets must be built on the principles of decent work, fairness and equal opportunity, arguing that exclusionary systems risk deepening social and economic divides.
“The world of work is resilient, but we must address ways to build inclusive labour markets that work for everyone, based on decent work and social justice principles,” Houngbo said.
“We must act collectively and be ready to learn from each other. There is no single recipe; there is no magic bullet.”
He explained that while global employment indicators appear encouraging on the surface, structural inequalities continue to limit access to quality jobs, especially in developing economies and emerging markets.
Women remain disproportionately represented in informal and low-paid work, while youth unemployment and underemployment persist at alarming levels in many regions.
Houngbo warned that failing to address these gaps could weaken social cohesion and slow long-term economic development.
Structural reforms and skills investment
The ILO chief identified structural reforms as a critical pathway to advancing inclusive labour markets, urging governments to prioritise investments in education, skills development and lifelong learning.
He noted that the rapid expansion of artificial intelligence, digitalisation and the green economy is reshaping labour demand, creating new opportunities while rendering some traditional roles obsolete.
Without targeted skills training, he said, millions of workers risk being left behind.
According to Houngbo, inclusive labour markets must also be supported by robust social protection systems that shield workers from economic shocks, job losses and income insecurity, particularly during periods of transition.
He further emphasised the importance of adopting inclusive approaches to just and sustainable transitions, ensuring that climate policies and technological shifts do not disproportionately affect low-income workers or marginalised communities.
Social dialogue as a cornerstone
A recurring theme at the conference was the role of social dialogue in addressing labour market challenges. Houngbo described dialogue among governments, employers and workers as an essential mechanism for designing effective and inclusive labour policies.
He encouraged conference participants to engage actively with the Global Coalition for Social Justice, an ILO-led initiative aimed at fostering international cooperation and translating commitments into measurable action.
“The challenges facing the world of work are complex and interconnected. Social dialogue allows us to build consensus, manage change and ensure that reforms deliver real benefits for workers and enterprises alike,” he said.
Strengthening global partnerships
Beyond his keynote address, Houngbo participated in the GLMC Ministerial Roundtable and held bilateral meetings with several of the more than 40 labour ministers in attendance.
One of the highlights of the conference was the signing of a memorandum of understanding between the ILO and Saudi Arabia’s Ministry of Human Resources and Social Development.
The agreement, signed with Saudi Minister Ahmad bin Sulaiman AlRajhi, aims to deepen cooperation on labour reforms, close gaps in decent work and support the effective implementation of policies aligned with international labour standards.
Houngbo praised Saudi Arabia for hosting the conference and facilitating dialogue on the future of work, noting that such platforms are vital for building consensus and fostering shared solutions.
“It is through initiatives like this that we can advance our collective goal of realising decent work and social justice,” he said.
Global implications
Analysts note that the ILO’s renewed push for inclusive labour markets comes at a critical moment, as countries grapple with slowing global growth, geopolitical tensions and rapid technological disruption.
While employment levels may be recovering, the quality, security and inclusiveness of jobs remain pressing concerns.
The ILO’s message underscores the need for governments to move beyond headline employment figures and focus on policies that promote dignity, equity and productivity in the world of work.
As discussions from the Riyadh conference continue to shape policy debates, the organisation insists that building inclusive labour markets is not only a moral imperative but also an economic necessity for sustainable and resilient growth worldwide.
