Gilbert Houngbo, the Director-General of the International Labour Organisation (ILO), has issued a compelling call for a fundamental shift in global economic thinking, urging policymakers to prioritize decent work, labour rights, and inclusive growth as interconnected pillars of sustainable development. Speaking at the IMF and World Bank Spring Meetings, Houngbo argued that a fragmented approach to economic policy, where employment, labour rights, and economic growth are treated as separate, and often competing, objectives, undermines progress across all three dimensions. He asserted that decent work is not merely a byproduct of economic growth but a fundamental driver of prosperity and resilience, and should therefore be placed at the heart of macroeconomic strategies. This integrated approach, he emphasizes, is crucial for addressing the persistent global deficits in decent work, including high levels of informality, youth unemployment, and widening gender disparities, which pose significant threats to global stability.
Houngbo’s argument rests on the premise that a focus on quality employment is not just socially desirable but economically essential. He highlights the precarious situation of a large segment of the global workforce, particularly those engaged in informal work who lack social protection, leaving them vulnerable to economic shocks. With an estimated 1.2 billion young people set to enter the workforce in the coming decades, the urgency of creating decent work opportunities is amplified. Failure to address this challenge, Houngbo warns, will not only exacerbate existing inequalities but also stifle economic growth and jeopardize social stability. The current global economic landscape, characterized by volatility and uncertainty, demands a more holistic and integrated approach to policymaking that recognizes the intrinsic link between decent work, social justice, and sustainable development.
Central to Houngbo’s call for reform is a rethinking of macroeconomic policies, including monetary and fiscal strategies. He advocates for a shift away from traditional macroeconomic frameworks that prioritize stability above all else, often at the expense of employment and social well-being. Instead, he proposes incorporating employment outcomes as key objectives alongside macroeconomic stability, arguing that this will not only improve people’s lives but also enhance economic resilience. This involves moving beyond a narrow focus on inflation and growth targets and adopting a broader perspective that considers the social dimensions of economic policy, including the impact on employment, wages, and social protection.
Furthermore, Houngbo stresses the importance of strategic investments in sectors with high potential for job creation and social impact, such as the green economy, care services, education, and digital infrastructure. These investments, he contends, are not merely expenditures but strategic interventions that can drive sustainable and inclusive growth while mitigating future economic shocks. Investing in the green economy, for instance, can create new jobs while addressing climate change, while investments in care services and education can improve human capital and enhance social well-being. Similarly, investing in digital infrastructure can bridge the digital divide and unlock new opportunities for economic participation.
In addition to macroeconomic reforms and strategic investments, Houngbo emphasizes the crucial role of labour rights and robust social protection systems as vital economic stabilizers. He argues that these systems are not just social safety nets but essential components of a resilient economy. Social protection systems, he notes, play a critical role in maintaining consumption during economic downturns, preventing individuals and families from falling into poverty, reducing inequality, and providing income security for workers navigating increasingly volatile labour markets. Stronger labour rights, meanwhile, empower workers, promote fair competition, and contribute to a more stable and productive workforce.
Finally, Houngbo highlights the ILO’s Global Coalition for Social Justice as a key platform for advancing this integrated approach to economic policy. Launched in 2023, the Coalition brings together over 300 partners from around the world to foster collaboration and promote concrete policy actions in collaboration with international financial institutions. The coalition aims to strengthen the link between social and economic policies and ensure that social justice is at the heart of global development efforts. Houngbo also points to the strengthened partnerships between the ILO, the IMF, and the World Bank as evidence of growing recognition of the importance of integrated policymaking. By recommitting to social justice as the cornerstone of economic policy, Houngbo concludes, we can establish decent work as the path to prosperity for all. This requires a bold rethinking of global economic policies, a shift away from fragmented approaches, and a renewed commitment to investing in people, protecting their rights, and creating a more just and equitable world.
