The International Labour Organization (ILO) has announced the elimination of approximately 225 jobs, a direct consequence of reduced U.S. funding to the United Nations agency. ILO Director-General Gilbert F. Houngbo expressed concern over the impact of these job cuts, which affect both the Geneva headquarters and field operations. The reduction in voluntary contributions by the U.S. under the Trump administration has prompted the ILO to consider relocating some of its operations to less expensive cities, potentially easing financial pressures.

In a related development, the ILO has highlighted the broader implications of U.S. trade policies on global employment. The organization revised its global job growth projection for 2025 downward by 7 million, citing the anticipated slowdown in economic growth due to tariff disputes. Nearly 84 million jobs worldwide, particularly in the Asia-Pacific region, are at high risk due to their dependence on U.S. consumption patterns. This adjustment reflects a decrease in global employment growth from 1.7% to 1.5% this year.

The ILO's latest World Employment and Social Outlook update underscores the potential for geopolitical tensions and trade disruptions to negatively affect labor markets globally. Director-General Houngbo emphasized the need to address fundamental issues reshaping the world of work to mitigate these impacts. The organization's findings point to a challenging period ahead for global employment, with significant implications for workers in regions most exposed to U.S. trade policies.

As the ILO prepares to approve its 2026-2027 budget, the agency faces unprecedented financial challenges. With the U.S. contributing 22% of the ILO's $880 million two-year budget, the withdrawal of aid by the Trump administration and other donors has left a significant funding gap. Houngbo warned of the possibility of revising the budget, a rare move for the ILO, highlighting the severity of the current financial situation.