Increasing trade conflicts are projected to eliminate approximately 7 million jobs worldwide, according to United Nations forecasts.
Global Job Market Braces for Impact of Trade Tensions amid US President's Policies
The International Labour Organization (ILO), a United Nations agency, has revised its job creation projections for 2025, projecting a decrease of 7 million jobs worldwide due to a weaker economic outlook triggered by escalating trade conflicts and geopolitical tensions. This decrease brings the predicted number of new jobs to 53 million rather than 60 million, marking a reduction in the global employment growth rate to 1.5% from 1.7%.
According to the report released on Wednesday by the ILO, the global economy is currently facing uncertainties caused by trade disruptions primarily arising from US trade policies. The agency's analysis is largely based on the International Monetary Fund's (IMF) downgraded expectations for the global economy, with the IMF attributing the slowdown to the uncertainty unleashed by the US President's barrage of new tariffs on trading partners.
The ILO report further reveals that nearly 84 million jobs across 71 countries are directly or indirectly tied to US consumer demand and thus vulnerable to the impact of these tariffs. Out of these jobs, approximately 56 million are located in the Asia-Pacific region, and more than 13 million are situated in the North American countries of Canada and Mexico.
The agency cautioned that workers dependent on US consumption and investment demand now face elevated risks of income loss due to higher tariffs and the unpredictability of future trade measures. Since re-assuming office in January, US President Donald Trump has increased import duties on trading partners and key goods such as cars and steel. The president has announced plans to impose punishingly high "reciprocal tariffs" on other countries if trade deals cannot be reached with the US by July 9.
Many businesses and consumers are reportedly bearing the brunt of the tariffs, their erratic implementation, and the unpredictability these elements have injected into the global economy. Employers, in particular, may become more cautious about hiring new workers given the uncertain economic landscape.
Gilbert Houngbo, the ILO's director general, expressed concerns about the slowing global economy and its potential impact on labor markets. He stated, "If geopolitical tensions and trade disruptions continue, they will most certainly have negative ripple effects on labor markets worldwide." The ILO emphasized that addressing the root causes of these disruptions and investing in social protection and skills development will be crucial in mitigating the negative impacts on global employment.
- The uncertainties caused by US trade policies and the escalating trade conflicts have led the International Labour Organization (ILO) to revise its finance projections, predicting a decrease in new job creation, which is now projected at 53 million instead of 60 million.
- The global economy's vulnerability to the impact of US trade policies is evident from the ILO report, as it reveals that nearly 84 million jobs in 71 countries are either directly or indirectly tied to US consumer demand and are thus at risk due to the US President's tariff policies.
