UN Reports Trade War Reduces Global Job Growth by 7 Million in 2025

The United Nations' International Labour Organization (ILO) has downgraded its global employment forecast for 2025, predicting 7 million fewer jobs will be created than previously expected, reducing the total forecast from 60 million to 53 million. This forecast reflects slower global economic growth, with GDP growth revised down to 2.8% from 3.2%, largely due to trade disruptions and geopolitical tensions stemming from U.S. trade policies under President Trump. Approximately 84 million jobs in 71 countries are tied to U.S. consumer demand and are at risk, especially in the Asia-Pacific region and in Canada and Mexico, where a significant share of jobs could be affected. The ILO also highlights a decline in the labor income share of GDP, which exacerbates global income inequality, and warns that ongoing tensions could have further negative ripple effects on labor markets worldwide. Despite these challenges, the ILO emphasizes the need for urgent action to strengthen social protections, invest in skills development, and promote inclusive labor markets to ensure technological change benefits all workers. The report underscores the uncertainty these trade tensions create for businesses and workers, contributing to more cautious hiring practices globally.