ILO Report Sounds the Alarm on Widening Inequality
A new assessment from the International Labour Organization (ILO) warns that without rapid and targeted reforms, workers worldwide will face growing economic and social inequality. The report emphasizes that the dignity and rights of workers must be at the center of economic policy and business strategy as governments navigate post-pandemic recovery, rising inflation, and rapid technological change.
What the ILO is calling for
The ILO lands a multi-pronged appeal to policymakers, business leaders, and labor organizations:
– Strengthen living wages and fair pay across sectors, ensuring wage growth keeps pace with productivity and cost of living.
– Expand social protection, including unemployment insurance, health coverage, and pensions, to cushion workers against economic shocks.
– Invest in skills and lifelong learning to enable workers to adapt to automation and evolving job markets, while safeguarding decent work conditions.
– Promote collective bargaining and respect for rights at work, so workers have a voice in pay, safety and working hours.
– Encourage inclusive employment strategies that reduce disparities for women, youth, migrants, and other vulnerable groups.
“Inequality is not just a moral issue; it undermines growth and social cohesion,” said the ILO. “When workers have a stake in the economy, consumption, investment, and trust in institutions rise.”
Why this matters now
The ILO highlights several global pressures that amplify the risk of widening inequality. The post-COVID recovery has been uneven across regions and industries, with low-wage and informal workers often hit hardest by slow job creation and rising living costs. At the same time, automation and the transition to greener economies threaten job security for some while creating new opportunities for others. This dynamic makes inclusive policy design essential to prevent a divergence between the gains of productivity and the well-being of workers.
Policies that could make a difference
Experts say the following measures could help close gaps without stifling growth:
– Adopting credible minimum wage floors tied to cost-of-living benchmarks, paired with targeted supports for small businesses.
– Expanding universal or targeted social protection that adapts to changing work arrangements, including gig and platform-based jobs.
– Scaling up public investment in health, childcare, and education to widen access to opportunity and reduce the burden on working families.
– Supporting upskilling programs and wage progression paths within firms to promote long-term job security.
– Strengthening the framework for collective bargaining and ensuring worker representatives have a seat at crucial decision-making tables.
What this means for different stakeholders
Governments are urged to integrate labor protection into macroeconomic policy rather than treating them as separate concerns. Employers are encouraged to view fair labor practices as a driver of productivity and resilience, not a cost. Labor organizations should push for transparent wage standards, strong safety nets, and robust skills development programs that reflect the evolving economy.
Looking ahead
The ILO’s assessment serves as a reminder that job quality, equitable pay, and social protection are inseparable from sustainable growth. With a focused set of reforms, governments and partners can curb inequality, make work more resilient to shocks, and build a fairer economy where dignity and rights at work are upheld for all.
