International ReportsImportant2025-01-16

ILO World Employment and Social Outlook 2025

In News

What Happened

On January 16, 2025, the International Labour Organization (ILO) released the World Employment and Social Outlook (WESO) Trends 2025 report. The report highlights a historic low in overall global unemployment at 5 percent. However, it warns of persistent structural issues, notably high global youth unemployment at 12.6 percent and the threat of generative AI automation affecting nearly a quarter of workers globally.

Why It Matters

This is highly relevant for India, given its massive youth demographic dividend and its reliance on service sector exports. As AI disrupts traditional IT and service jobs, India must urgently reskill its workforce to prevent a rise in structural unemployment and expanding inequality.

Background

History & Context

The ILO publishes the WESO report annually to track global labor market trends, job quality, and employment disparities. Post-COVID-19, global employment recovered numerically but struggled with job quality, leading to increased informalization in developing nations. Recent exponential advancements in Generative AI have shifted labor market concerns from mere job creation to severe job displacement risks, particularly in clerical and knowledge-based roles.

What Changed

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BEFORE: Global unemployment rates were elevated and recovering slowly in the aftermath of the global pandemic. NOW: Overall global unemployment has dropped to a historic low of 5 percent in 2025.
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BEFORE: Traditional automation primarily threatened blue-collar and routine physical labor in manufacturing sectors. NOW: Nearly one in four workers globally faces high exposure to generative AI-driven automation, directly threatening white-collar and service jobs.
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BEFORE: Youth unemployment was an ongoing concern but often overshadowed by the need for general post-pandemic economic recovery. NOW: Youth unemployment remains stubbornly high at 12.6 percent, revealing a deep structural imbalance that current economic growth is failing to solve.

Prelims Angle

NCERT Connection

This directly links to Class 11 Indian Economic Development Chapter 7 (Employment: Growth, Informalisation and Other Issues). It expands on the chapter's concepts of structural unemployment and the changing nature of work by showing how emerging technologies like Generative AI are reshaping global labor markets.

Practice Questions

Q1

Correct Statement(s)

Which of the following statements is/are correct regarding the findings of the ILO World Employment and Social Outlook (WESO) Trends 2025 report? 1. The report indicates that overall global unemployment has reached a historic high due to the displacement caused by generative AI. 2. Nearly one in four workers globally faces high exposure to generative AI-driven automation.

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