ILO Director-General calls for inclusive labour market reform amid global challenges

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RIYADH (ILO News) – Global labour markets have made significant progress, with unemployment rates at historically low levels, improved job quality, and increased formal employment. These positive developments underscore the resilience of the world of work and the effectiveness of policies aimed at fostering economic growth and stability. However, persistent inequalities remain a challenge, requiring urgent action to ensure that the benefits of this progress are shared equitably, said ILO Director-General Gilbert F. Houngbo at the second Global Labour Market Conference (GLMC) in Riyadh, Saudi Arabia.

 

In his address to the conference on Thursday, Houngbo emphasized the need to advance social justice through decent work. He highlighted the importance of addressing challenges facing the global labour market, including rising unemployment among young people, persistent decent work deficits, and the disproportionate impact of these issues on women, youth, and other vulnerable populations.

 

Houngbo noted that digitalization, climate action, just transition efforts, and demographic changes are fundamentally reshaping the world of work, creating both opportunities and challenges. He also underscored the compounded pressures of global crises, such as armed conflicts, extreme weather events, and political instability, on jobs and livelihoods.

“It is important that we address ways to foster an inclusive labour market that works for all people, based on decent work and social justice principles,” Houngbo said in his address. “We must act collectively and be ready to learn from each other. There is no single recipe; there is no magic bullet.”

 

Prioritizing structural improvements to labour markets is key, Houngbo said, including investing in education and skills training to meet the evolving demands of AI-driven industries and the green economy. The Director-General also stressed the need to work collectively toward fostering equitable access to opportunities, building effective social protection systems, and ensuring that efforts to achieve sustainable and just transitions are inclusive.

He further highlighted the significance of social dialogue as an essential mechanism for addressing labour market challenges, noting the importance of collaboration among governments, employers, and worker representatives. He urged conference participants to engage with the Global Coalition for Social Justice, an ILO-led platform aimed at facilitating international cooperation and concrete actions to strengthen social justice globally.

Houngbo concluded his address by commending the Government of Saudi Arabia for hosting the GLMC and fostering international dialogue on the future of work. “It is through initiatives like this that we can advance our collective goal of realizing Decent Work and Social Justice,” he said.

 

In addition, the ILO Director-General participated in the GLMC’s Ministerial Roundtable and held bilateral meetings with some of the over 40 labour ministers attending the conference, including Saudi Arabia’s Minister of Human Resources and Social Development, Ahmad bin Sulaiman AlRajhi.

During the meeting, AlRajhi and Houngbo signed a memorandum of understanding to expand and deepen the programme of cooperation between the Ministry and the ILO, ensuring the effective implementation of the many reforms undertaken in Saudi Arabia and addressing decent work gaps in the Kingdom. 

 

Houngbo also met with the leadership of the Federation of Saudi Chambers and the Saudi National Committee of Workers’ Committees.

The Director-General joined side events organized by the ILO and its partners, including a session with the Federation of Saudi Chambers on promoting digital, green, and responsible business in the Gulf countries, and a discussion with the Digital Cooperation Organisation on the intersection of AI, digital transformation, and decent jobs.

The second GLMC, convened by the Ministry of Human Resources and Social Development (MHRSD) of Saudi Arabia from 29-30 January, brought together global leaders, policymakers, worker and employer representatives, and experts to discuss strategies for labour market resilience in the face of global challenges.  

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