The United Nations has raised red flags about the global job market, revealing that millions of potential jobs may disappear in 2025. The reason? A turbulent economic environment largely blamed on US President Donald Trump’s renewed trade war policies. The International Labour Organization (ILO) says this economic uncertainty has led to downgraded employment projections worldwide.
According to the ILO’s latest report, only 53 million jobs are now expected to be created globally in 2025 — that’s 7 million fewer than previously projected. The drop is largely attributed to escalating trade disruptions and mounting geopolitical tensions, both of which are hitting global business confidence hard.
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The ILO’s findings are rooted in the International Monetary Fund’s April downgrade of global GDP growth to 2.8%, down from 3.2%. The IMF directly cited the negative effects of new tariffs imposed by President Trump on America’s trading partners, which have stirred widespread instability.
The report also highlights that nearly 84 million jobs in 71 countries are tied to US consumer demand. Of these, around 56 million jobs are located in the Asia-Pacific region, with over 13 million more in Canada and Mexico. These jobs are now highly exposed to income loss and employment insecurity due to heightened trade barriers.
Since returning to office in January, President Trump has reignited his protectionist trade agenda. Major imports, such as cars and steel, are already facing steep tariffs. He has also declared that starting July 9, he will impose harsh new “reciprocal tariffs” on countries unless trade agreements are renegotiated on US terms.
The unpredictability of Trump’s tariff timeline and the sweeping scope of trade measures have led businesses to become more conservative in hiring. The ILO warns that in such an atmosphere of uncertainty, employers are unlikely to expand workforces, potentially exacerbating unemployment in already fragile economies.
Gilbert Houngbo, Director-General of the ILO, emphasized that the slow pace of global economic growth combined with continued trade disruption could have severe ripple effects across labor markets. “If geopolitical tensions and trade disruptions continue… they will most certainly have negative ripple effects on labor markets worldwide,” he cautioned.
This latest warning from the ILO paints a worrying picture of how international politics and economic policies can have real-world consequences on employment. While the aim of Trump’s tariffs is to protect domestic industries, the collateral damage is global. Vulnerable economies, especially in Asia-Pacific, are likely to bear the brunt. Employers face a paradox — growing costs from tariffs while hesitating to hire due to uncertainty. This could stall economic recovery in multiple regions and deepen inequalities in the global workforce. The countdown to July 9 adds further pressure on international leaders to act swiftly to prevent a broader economic downturn.
