As we step into 2025, the global labour market continues to evolve, shaped by economic shifts, technological advancements, and geopolitical events. While the post-pandemic economic recovery has contributed to lower unemployment rates, disparities persist across different income groups, genders, and age demographics. Understanding these trends is essential for businesses, policymakers, and job seekers navigating the future of work.
A Shifting Employment Landscape
The global unemployment rate now stands at 4.9%, the lowest since 1991. However, this figure masks significant regional and demographic variations:
- Middle-income countries have seen a decline in unemployment, while low-income countries have experienced an increase from 5.1% in 2022 to 5.3% in 2024.
- Gender disparities remain evident. While the unemployment rate for men has declined to 4.8%, women still face a higher rate of 5.2%, particularly in lower-middle-income countries.
- Youth unemployment remains a concern, with 13% of young people unemployed and a global NEET (Not in Education, Employment, or Training) rate stagnating at 21.7%. The challenge is particularly acute in lower-income economies, where the NEET rate reaches 27.6%.
The Need for Job Creation
A crucial aspect of the labour market outlook is the jobs gap—the number of additional jobs needed to absorb the available workforce. In 2024, the gap stood at 402 million jobs, with the most significant disparities observed in low-income economies. The gap for women remains wider than that for men, highlighting the continued need for targeted employment policies and inclusive workforce strategies.
Labour force participation has rebounded to pre-pandemic levels in most economies, except for lower-middle-income countries. As these economies account for 40% of the global population, ensuring adequate job creation in these regions will be essential for long-term economic stability.
Looking Ahead: The Future of Jobs Report 2025
The World Economic Forum’s Future of Jobs Report 2025 provides a forward-looking analysis of how organizations expect the labour market to evolve over the next five years. Based on insights from over 1,000 global employers across 55 economies and 22 industries, the report explores:
- Five key macro trends shaping employment: technological change, the green transition, economic uncertainty, geopolitical fragmentation, and demographic shifts.
- Projected job growth and decline, highlighting roles that will be in high demand and those at risk of automation.
- The evolution of skills and the increasing importance of upskilling and reskilling initiatives.
- Workforce transformation strategies that organizations plan to implement to stay competitive.
The report also provides regional and industry-specific insights, offering valuable perspectives on workforce trends in different economic contexts.
What This Means for Businesses and Job Seekers
Understanding these trends can help businesses and professionals adapt to the changing labour landscape:
- Employers should prioritise skills development, invest in emerging technologies, and implement inclusive hiring practices.
- Job seekers must stay ahead by acquiring in-demand skills, embracing digital transformation, and exploring opportunities in growing industries.
- Policymakers should focus on closing employment gaps, supporting workforce participation, and fostering sustainable economic growth.
The 2025 labour market landscape reflects both challenges and opportunities. While global employment figures show signs of recovery, underlying disparities must be addressed through inclusive policies, workforce development, and sustainable economic strategies. As industries navigate these shifts, investing in skills development and workforce transformation will be key to long-term resilience and success.
For a deeper dive into the latest labour market insights, access the Future of Jobs Report 2025 here: https://www.weforum.org/publications/the-future-of-jobs-report-2025/digest/