The International Labour Organization’s (ILO) report, ‘State of Social Justice: A Work in Progress,’ reveals key findings on climate change and its effects on employment. According to the report, low-income earners, who contribute just 12% of global emissions, will face 75% of the income losses from climate-related effects.
Job Creation and Disruption
The report estimates that transitioning to cleaner energy sources could lead to the loss of around six million jobs in fossil fuel industries. However, these efforts could simultaneously create roughly 24 million new jobs in renewable energy and green sectors. When including transitions to sustainable agriculture and the circular economy, over 100 million jobs could be created, while about 80 million may be eliminated. This suggests a net positive impact on global employment.
The Need for Reskilling and a Just Transition
Despite the potential for net job growth, this major shift will require a significant workforce adjustment. The ILO estimates that at least 70 million workers will need to be reskilled or upskilled to adapt to the new green economy. To manage this transition fairly, the ILO has developed guidelines for a “just transition,” advocating for policies that promote decent work, reduce inequality, and involve social dialogue to ensure that environmental measures do not worsen existing disparities.
Persistent Inequalities and Social Issues
The report also notes that despite major gains in education, poverty reduction, and productivity over the past three decades, deep-seated inequalities and fragile trust in institutions have slowed the progress of social justice worldwide. The report finds that while the world is wealthier, healthier, and better educated than it was in 1995, the benefits have not been shared evenly.
The report highlights several key points:
- A person’s earnings are still largely determined by circumstances of birth (such as country and gender) at a rate of 71%.
- Informal employment has fallen by only two percentage points in two decades and still affects 58% of workers.
- The gender labor force participation gap has narrowed by only three percentage points since 2005 and remains at 24%.
- At the current rate, it will take a century to close the global gender pay gap.
