ILO urges IMF, World Bank to prioritise job quality

The International Labour Organization (ILO) has called on the International Monetary Fund (IMF) and the World Bank to prioritize job quality, workers' incomes, and labor market conditions in their policy advice and reform programs. ILO Director-General Gilbert Houngbo stated that productivity gains, including those from artificial intelligence (AI), are not being distributed widely enough to support inclusive growth.

He emphasized that economic stability and social justice are closely linked, and that policies are needed to translate productivity growth into better wages, improved working conditions, and stronger social protection.

Despite overall stability in labor market indicators, the ILO highlighted growing vulnerabilities, such as weaker hiring, declining real incomes, informal employment, and deteriorating working conditions. The organization warned that productivity growth's benefits depend on where the gains occur, how they are distributed, and among various stakeholders.

Global economic pressures, including rising energy, food, and fertilizer prices due to Middle East conflicts, shipping disruptions, renewed inflation, and high public debt, are disproportionately affecting workers and businesses. About 2.1 billion workers, or 58% of the global workforce, are in informal employment, with progress in reducing informality stalling.

The ILO urged stronger collaboration between the ILO and the World Bank Group to improve employment outcome measurement, including integrating job quality into development indicators. They also advocated for the World Bank Group's renewed focus on jobs to support employment that enhances productivity, raises incomes, builds skills, and gives workers a stronger voice.

The ILO cautioned that AI could exacerbate disparities if its benefits remain concentrated among a few firms and countries, while digital infrastructure, skills, and technology are unequally accessible to workers in developing economies.