Dhaka: Tuomo Poutiainen, the outgoing Country Director for the International Labour Organization (ILO), has called on Bangladesh to enhance its efforts in skills development reform to prepare its workforce for more specialized and better-paying jobs domestically and internationally.
According to Bangladesh Sangbad Sangstha, Poutiainen emphasized the significance of this reform in light of the global contraction of jobs and the unique challenges faced by Bangladesh, including political, economic, social, and climatic transitions. The country, which sends over a million workers abroad annually, must prioritize creating decent work opportunities, particularly for women and youth, as highlighted in the ILO’s new World Employment and Social Outlook (WESO) update.
The ILO’s latest employment projections are informed by economic growth estimates from the International Monetary Fund’s April 2025 World Economic Outlook. The organization has adjusted its global employment forecast for 2025, now anticipating the creation of 53 million jobs, down from an earlier estimate of 60 million. This revision suggests a reduction in global employment growth from 1.7 percent to 1.5 percent for the year.
This decrease, equivalent to approximately seven million fewer jobs, mirrors a downgraded global economic forecast, with GDP growth expected at 2.8 percent, compared to a previous estimate of 3.2 percent. The ILO further notes that approximately 84 million jobs across 71 countries are linked to U.S. consumer demand, making them vulnerable to disruptions from heightened trade tensions. The Asia-Pacific region holds the majority of these jobs, while Canada and Mexico have the highest percentage of jobs – 17.1 percent – at risk.
ILO Director-General Gilbert F. Houngbo remarked that the slower-than-expected growth of the global economy could lead to adverse effects on labor markets worldwide if geopolitical tensions and trade disruptions persist. He advocates for strengthening social protection, investing in skills development, promoting social dialogue, and building inclusive labor markets to ensure that technological advancements benefit all.
The report also highlights concerning trends in income distribution, with the global labor income share decreasing from 53.0 percent in 2014 to 52.4 percent in 2024. This decline has been most pronounced in Africa and the Americas. The report underscores the widening gap between economic growth and worker compensation, which exacerbates inequality.
Employment is shifting towards high-skilled jobs, with women driving this trend. Between 2013 and 2023, the share of women in high-skilled occupations rose from 21.2 to 23.2 percent, while the share of men in such roles was around 18 percent in 2023. Nonetheless, occupational segregation remains, with women underrepresented in sectors like construction and overrepresented in clerical and caregiving positions.
The report also examines the impact of emerging technologies on employment, discovering that nearly one in four workers may see their roles transformed by generative AI. While medium-skilled jobs are somewhat exposed, a higher percentage of high-skilled jobs face potential automation by AI.
ILO Director-General Houngbo concluded by emphasizing the importance of addressing these findings to create decent jobs, urging for urgent, ambitious, and united action to ensure technological change benefits all.