Keynote address by the Director-General of the International Labour Organization, Gilbert F. Houngbo

First of all, let me start by expressing my deepest thoughts to Minister Meth and our hope that she will soon be back with all of us.

Honourable Ministers,
Esteemed Delegates,
Representatives of Workers and Employers
Ladies and Gentlemen,

1. Let me thank and commend South Africa for a very good LEMM and our partners for the Declaration; we do not want to take it for granted.

2. We have reason for cautious optimism as we gather – labour force participation rates have finally returned to or exceeded, pre-pandemic levels in most G20 countries, and we have seen a sharp increase in women’s labour force participation.

3. And this did not just happen. Across the G20, you have continued to take policy action that fosters equality in the labour market – from facilitating work-family reconciliation, to improving the working conditions of paid care workers, and preventing violence and harassment at work, G20 members are putting commitment to action and we see that and that makes a difference.

4. Similarly, and despite significant variation between countries, the average share of young people not in employment, education, or training – the NEET – has declined across the G20, from an average of 20 per cent to 17.6 per cent.

5. The progress that is being made is similarly because of targeted policy initiatives, from financial incentives that encourage employers to hire youth, to enhanced education and training programmes that improve youth employability.

6. This attentive, careful action – documented in two joint reports by the ILO and the OECD on Women at Work and Youth at Work, and which will be presented today and tomorrow – resonates with the hosen theme of this year’s G20 for which I really want to congratulate our host country: Solidarity, Equality and Sustainability. To act with solidarity, to foster equality and to pursue sustainability, is to move social justice from commitment to action, from a mandate to a lived reality for all.

Excellencies,

7. As you gather today and tomorrow to commit to policy action that fosters equality and reduces exposure to risk in the world of work, there are of course some deeply challenging realities that must be kept in mind.

8. And we all know this: Economic uncertainty is high, and the economic and labour market outlook for 2025 tells us to expect increased fragility.

9. Wage inequality has increased in most emerging economies in the G20, and informal employment remains a critical challenge in several countries. Labour income shares have fallen in almost all G20 countries.

10. We also estimate that despite the post-pandemic rebound, the 2025 labour force participation rate for the G20 will only be 61.5 per cent.

11. And behind this figure lie some worrying patterns, which remind us that barriers to labour market participation continue to undermine social justice, including for women and for youth.

12. Across the G20, there are significantly fewer women participating in labour markets than men, with an average G20 labour force participation gap of 18 percentage points in 2024. A staggering 229 million women remain outside of the labour force across G20 countries.

13. Moreover, wage gaps between men and women, across intersecting factors such as migrant status, ethnicity and disability, are not only substantial, but they are persistent.

14. Significant disparities between men and women also extend to young people in NEET. Across the G20, young women are, on average, 8.6 percentage points more likely to experience NEET than young men.

15. Across the board, two-thirds of young people in NEET are inactive. They are disconnected from the labour market, often invisible to traditional employment services, and face complex barriers to entry – from mental health challenges to a lack of access to information.

Ladies and gentlemen,

16. We must remain conscious about the challenges of “living and working in an unequal world”, to address them.

17. But let me also reframe the challenges, so we can be sure to seize the opportunity: gaps in labour force participation and NEET rates remind us that there is significant, untapped potential across the G20 to foster labour market inclusion while improving living standards, including by reducing the wage gaps. We must not gloss over this: we commit and act, with solidarity, equality and sustainability, because we need everyone and are stronger when we leave no one behind.

18. I wish also to stress this: the G20 economies obviously are the largest in the world, so your commitments, including your commitments to tackle wage gaps between men and women, stand to break new ground. Your commitments to action can chart new paths to social justice through decent work, inspiring further work in other countries whose economies face similar, indeed at times greater, challenges.

Honourable Ministers,

19. I am deeply encouraged by the steadfast work that has been accomplished to renew two critical goals:

• first, to support the entry into labour markets of young people, and
• second, to reduce persistent gaps in both labour market participation and the pay between men and women.

20. The joint ILO and OECD Reports show that a decade of political will, translated into concerted policy action, and adapted to country contexts, has moved the needle in concrete, measurable ways. Meaningful progress that moves us toward better social justice remains possible.

21. This progress should not lead to complacency, however. We must do more. We must be bolder.

22. The ILO therefore wants to welcome your commitment to the new Nelson Mandela Bay Youth Target, which has been referred to by my predecessors, to reduce the proportion of young people aged 15 to 29 in NEET status by a further 5 per cent by 2030.

23. This target not only enhances the 2015 Antalya Goal of 15 per cent by 2025. It is a call for us to deepen our ambition for a holistic, and just approach. It supports us to strengthen youth skills for future work and to foster the spirit of entrepreneurship that will drive innovation.

24. The ILO also welcomes the new Brisbane – eThekwini Goal.

• First, because it extends the commitment to reduce the gap in labour force participation between women and men by 25 per cent by 2025 to 2030.
• Second, it does elevate that ambition, by committing to advancing equal pay for work of equal value and progressively reducing the unadjusted wage gap between men and women by 15 per cent by 2035 with an undertaking to review after 5 years to consider increasing the target to 35 per cent by 2035, which is very ambitious.

25. Achieving these goals will of course require an unwavering commitment to social dialogue. All three parties from Governments, employers' organizations, and workers' organizations must forge joint solutions that are equitable and sustainable.

26. And let us recall what we do know in our ILO constitutional Declaration of Philadelphia, which I will quote: “a just share of the fruits of progress to all, and a minimum living wage to all employed and in need of such protection.”

27. So in closing, I would like to welcome your commitment to improve wage-setting mechanisms and policies, to promote collective bargaining and to strengthen social protection systems for improved income security.

28. Please rest assured, and I am sure I am speaking on behalf of our tripartite constituents, that the ILO stands ready to work with you to move those commitments into action.

Thank you.