The ILO calls on the G20 for international solidarity to close the global decent work gap

2023-07-21 00:00:00

Shri Bhupender Yadav, Minister of Labor and Employment of India, with ILO Director General Gilbert F. Houngbo © Ministry of Labour and Employment India GENEVA (ILO News) – ILO Director-General Gilbert F. Houngbo called on G20 Labor and Employment Ministers to address skills gaps, invest in social protection systems for all and adopt sustainable financing mechanisms for employment and social protection policies, in order to close the growing gaps in the global labor market and reduce inequalities.

The ministerial meeting, hosted by India and held in Indore on 20-21 July, focused on three main themes: addressing global skills gaps, extending social protection to platform and gig economy workers, and sustainably financing national social protection systems. The ministers agreed specific policy priorities to accelerate progress on the first two of these challenges and on a set of policy options on the third.

“Currently, the global jobs gap is widening in the face of global shocks and risks, with low-income countries falling further and further behind,” Houngbo told the ministers.

“To address this situation and promote social justice, more global resources must be mobilized. Initiatives such as the UN Global Jobs Accelerator and Social Protection for Just Transitions play a critical role in generating the necessary technical and financial support. Such efforts must be part of a broader reform of the international financial architecture to make more resources available to achieve the SDGs. [Objetivos de Desarrollo Sostenible]”said the Director General of the ILO.

Referring to the Antalya Youth Target to reduce by 15% by 2025 the share of young people most at risk of being permanently left behind in the labor market, Houngbo told ministers that the NEET rate (young people aged 15-29 without employment, education or training) had returned to or below its pre-pandemic level, with 12 G20 members on track to meet the target.

But to move forward, and to tackle gender inequality in particular, action must focus on promoting more and better jobs for young people, investing in economic sectors with high youth employment potential and improving the quality of employment to encourage participation in the labor market, stressed the Director General. Investments in Technical and Vocational Education and Training (TVET) and in quality apprenticeships, as well as the combination of active labor market policies with income support, are also very important to reach the most disadvantaged young people, he added.

Ministers discussed ways to address skills gaps to increase productivity and wages, but also ways to decrease labor turnover and increase the ability of companies to innovate or deploy new technologies. “Regions where skills deficiencies are widespread are also more likely to experience high unemployment,” said Richard Samans, ILO Sherpa to the G20 and Director of the ILO Research Department. “In turbulent times, ‘investing in people’ restores trust in institutions and helps build a new social contract. Massive investment in skills is therefore needed more than ever as we grapple with the need to achieve socially just green and digital transitions,” he added.

The ILO advocated for a common language on skills and qualifications to facilitate comparability between countries and mutual recognition of skills. The ILO, together with the OECD, will launch a feasibility study for a global taxonomy of skills that will be available by the end of 2026. The ILO also welcomed the agreed extension of the coverage of the ILO and OECD Skills for Jobs databases to all G20 countries and beyond. This will improve the availability, timeliness and international comparability of data on demand and supply for skills, occupations and qualifications, and will help close global skills gaps.