OIT - The State of Social Justice 2025 - Executive Summary EN

The state of social justice A work in progress ILO Flagship Report 2025 Executive summary1 Executive summary Thirty years ago, delegates from 186 countries – at the time, the largest gathering of world leaders ever assembled – convened in Copenhagen for the first World Summit for Social Development. The 1995 summit recognized the centrality of full and productive employment for social development, noting how it was interrelated with poverty eradication and social inclusion. It aimed to establish a people-centred framework for social development in a world where basic needs were still not being met, where poverty persisted and where unemployment and social exclusion were rising. Ahead of the Second World Summit for Social Development, which will take place in Qatar in November, the ILO has embarked on its first ever attempt to assess the state of social justice in the world and reflect on the progress made over the last 30 years. Social justice means that “all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity”.1 In addition to being a moral imperative, social justice also enables societies and economies to function more cohesively and effectively. It helps build trust, enhances legitimacy and unlocks productive potential for sustained inclusive growth, peace and stability. This report evaluates key indicators used to measure the global progress and ongoing challenges in achieving social justice, building on the premise of the ILO Constitution that “universal and lasting peace can be established only if it is based upon social justice”.2 Significant progress has been made. Since 1995, the world is wealthier, healthier and better educated. Yet, progress in certain areas remains limited, and stark global inequalities endure. Hence, in spite of the many improvements, disenchantment with institutions is widespread and persistent. Governments, unions and businesses face declining levels of trust, indicating a fraying social contract. Many people increasingly feel that their effort is not being rewarded and that society is unfair. In this report, the ILO examines the state of social justice in the world and makes recommendations for action to ensure continued progress.

and persistent. Governments, unions and businesses face declining levels of trust, indicating a fraying social contract. Many people increasingly feel that their effort is not being rewarded and that society is unfair. In this report, the ILO examines the state of social justice in the world and makes recommendations for action to ensure continued progress. 1 D eclaration concerning the aims and purposes of the ILO (1944) (Declaration of Philadelphia), Part II(a). 2 IL O Constitution, Preamble.XIV The state of social justice: A work in progress The world is wealthier, healthier and better educated than in 1995, and significant progress has been made in several dimensions. However, progress in certain areas remains limited, and stark global inequalities endure. Key progress and persistent disparities from 1995 to 2025

Building a just world: Four foundational pillars The ILO’s vision for advancing social justice is built upon four pillars, each of which is discussed

in the corresponding chapter:

1. Fundamental human rights and capabilities: These lay the foundation for social justice and involve ensuring fundamental freedoms and entitlements.

2. Equal access to opportunities: Social justice requires a focus on removing barriers to participation in education, training and the world of work, enabling people to earn a decent living.

3. Fair distribution: This pillar aims to ensure a just share of economic growth benefits, with particular attention to the most disadvantaged.

4. Fair transitions: Social justice in a changing world involves applying, adapting and amplifying institutions to manage major societal shifts (environmental, digital and demographic) justly, ensuring no one is left behind. 138 million children aged 5–17 in child labour, with almost 50% engaged in hazardous labour 1 in 4 lacks access to clean water Earnings ratio between men and women 78% in 2025

At current trends, wage gap will take 50–100 years to close Top 1% still control 20% of income and 38% of wealth 800 million live on under US$3 a dayExecutive summary XVXV Chapter 1: Fundamental human rights and capabilities

At current trends, wage gap will take 50–100 years to close Top 1% still control 20% of income and 38% of wealth 800 million live on under US$3 a dayExecutive summary XVXV Chapter 1: Fundamental human rights and capabilities Fundamental human rights and capabilities are the indispensable foundation for achieving social justice, both within the world of work and the wider world. Human rights, labour rights and enhanced capabilities are essential conditions for social justice. Basic human rights are laid out in various instruments, such as the Universal Declaration of Human Rights (1948), the International Covenant on Economic, Social and Cultural Rights (1966) and the International Covenant on Civil and Political Rights (1966). The Copenhagen Declaration on Social Development (1995) (Copenhagen Declaration)3 reaffirmed the interdependence between social development, human rights and international security, building on the ILO Declaration of Philadelphia (1944) and the Charter of the United Nations (1945). All of these acknowledge the importance of the right to free expression as critical for social, political and economic rights. The Copenhagen Declaration reaffirmed that social development, social justice, human rights, and international peace and security are deeply interconnected, echoing earlier principles from the ILO and the Charter of the United Nations. It committed the international community to promoting quality employment, protecting workers’ rights and upholding key ILO Conventions. The Copenhagen Declaration was later reinforced by the ILO Declaration on Fundamental Principles and Rights at Work (1998) and its amendment in 2022, which identified five labour rights as enabling fundamental human rights in the sense that they open the door 3 T he Copenhagen Declaration is the outcome document of the first World Summit for Social Development, held in Copenhagen in 1995. School completion rates since 2000

Primary: +10%

Secondary: +22% Annual output per worker ↗ 78% since 1995, and in upper-middle-income countries ↗ 215% Child labour 20.6% in 1995 ↘ 7.8% in 2024

Since 2023

Primary: +10%

Secondary: +22% Annual output per worker ↗ 78% since 1995, and in upper-middle-income countries ↗ 215% Child labour 20.6% in 1995 ↘ 7.8% in 2024

Since 2023 over 50% of world is now covered by some social protection scheme Work-related mortality ↘ over 10% since 2000 Labour productivity inequality between countries ↘ 40% since 1995 Extreme poverty 4 in 10 in 1995 ↘ 1 in 10 in 2023 Working poverty 27.9% in 2000 ↘ 6.9% of employed persons in poverty in 20244

The state of social justice: A work in progress to other human and labour rights: freedom of association and the effective recognition of the right to collective bargaining; the elimination of forced or compulsory labour; the abolition of child labour; the elimination of discrimination at work; and a safe and healthy working environment. In addition, the right to work, the right to just and favourable conditions of work and the right to social security are fundamental human rights related to the world of work.

Progress on guaranteeing basic human rights for all has been mixed. On the one hand, the prevalence of child labour and the rate of fatal occupational injuries have both fallen steeply since 1995. On the other, the compliance with freedom of association and collective bargaining rights score has not improved since 2015 and forced labour remains at close to 3.5 per cent of the population. Chapter 2: Equal access to opportunities Equal access to opportunities means overcoming and removing barriers to participation in education, training and the world of work, enabling people to secure decent work through paid employment or self-employment. The concept of decent work introduced by the ILO in 1999 refers to productive employment for women and men, covered by social protection systems, respectful of labour rights and with conditions negotiated with sound social dialogue mechanisms. While this concept is too comprehensive to allow a single (or even composite), precise measurement, many

to productive employment for women and men, covered by social protection systems, respectful of labour rights and with conditions negotiated with sound social dialogue mechanisms. While this concept is too comprehensive to allow a single (or even composite), precise measurement, many proxy indicators reveal that improvement is too slow. For example, informality – a widespread and persistent barrier to opportunity – serves as a partial indicator4 of the global decent work deficit. In 2025, 58 per cent of workers are in informal employment. Economic growth alone does not ensure decent or formal work, underscoring that policies are crucial for supporting equal access to job opportunities. At the start of the twenty-first century, GDP growth of 1 per cent led to a rise in formal employment of 0.50 per cent – faster than overall employment growth. In the past decade, however, this relationship fell to 0.38 per cent, indicating a weaker link between economic growth and the creation of formal jobs.5 Beyond informality, large gaps in labour force participation persist between men and women, between youth and prime-age workers, between persons with and without disabilities and between countries at different income levels (see figures ES1 and ES2). While global unemployment rates may have fallen – especially in high-income countries due to better policies as well as the impact of ageing populations, which lower labour force participation rates – they are rising in low-income countries. Labour underutilization (including time-related underemployment and the potential labour force, which captures people who are currently outside the labour force but ready to 4 A f ormal job may or may not constitute decent work, but an informal job can never do so. 5 ILO, Jobs, Rights and Growth: Reinforcing the Connection – Report of the Director-General, ILC.113/I(B), 2025. X Figure ES1. Combined labour underutilization measure (LU4) by country income group, 2005–22 (percentage) Source: ILOSTAT, ILO modelled estimates, November 2024. 12.2 9.7

X Figure ES1. Combined labour underutilization measure (LU4) by country income group, 2005–22 (percentage) Source: ILOSTAT, ILO modelled estimates, November 2024. 12.2 9.7 14.4 13.4 16.2 15.2 18.6 22.5 0 5 10 15 20 25 2005 2010 2015 2020 2025 High-income Upper-middle-income Lower-middle-income Low-income X Figure ES2. Global prime-age labour force participation rate by sex and household type, 2023 (percentage) Source: ILOSTAT, ILO modelled estimates, November 2024. 91 64 95 56 91 55 89 71 91 68 40 60 80 100 Total Couple with child under 6 Extended family with child under 6 Lone parent with child under 6 Household without child under 6 Men WomenExecutive summary 5 to other human and labour rights: freedom of association and the effective recognition of the right to collective bargaining; the elimination of forced or compulsory labour; the abolition of child labour; the elimination of discrimination at work; and a safe and healthy working environment. In addition, the right to work, the right to just and favourable conditions of work and the right to social security are fundamental human rights related to the world of work. Progress on guaranteeing basic human rights for all has been mixed. On the one hand, the prevalence of child labour and the rate of fatal occupational injuries have both fallen steeply since 1995. On the other, the compliance with freedom of association and collective bargaining rights score has not improved since 2015 and forced labour remains at close to 3.5 per cent of the population. Chapter 2: Equal access to opportunities

Equal access to opportunities means overcoming and removing barriers to participation in education, training and the world of work, enabling people to secure decent work through paid employment or self-employment. The concept of decent work introduced by the ILO in 1999 refers to productive employment for women and men, covered by social protection systems, respectful of labour rights and with conditions negotiated with sound social dialogue mechanisms. While this concept is too comprehensive to allow a single (or even composite), precise measurement, many proxy indicators reveal that improvement is too slow. For example, informality – a widespread and persistent barrier to opportunity – serves as a partial indicator4 of the global decent work deficit. In 2025, 58 per cent of workers are in informal employment. Economic growth alone does not ensure decent or formal work, underscoring that policies are crucial for supporting equal access to job opportunities. At the start of the twenty-first century, GDP growth of 1per cent led to a rise in formal employment of 0.50per cent – faster than overall employment growth. In the past decade, however, this relationship fell to 0.38 per cent, indicating a weaker link between economic growth and the creation of formal jobs.5 Beyond informality, large gaps in labour force participation persist between men and women, between youth and prime-age workers, between persons with and without disabilities and between countries at different income levels (see figuresES1 and ES2). While global unemployment rates may have fallen – especially in high-income countries due to better policies as well as the impact of ageing populations, which lower labour force participation rates – they are rising in low-income countries. Labour underutilization (including time-related underemployment and the potential labour force, which captures people who are currently outside the labour force but ready to 4 A f ormal job may or may not constitute decent work, but an informal job can never do so.

5 ILO, Jobs, Rights and Growth: Reinforcing the Connection – Report of the Director-General, ILC.113/I(B), 2025. X Figure ES1. Combined labour underutilization measure (LU4) by country income group, 2005–22 (percentage) Source: ILOSTAT, ILO modelled estimates, November 2024. 12.2 9.7 14.4 13.4 16.2 15.2 18.6 22.5 0 5 10 15 20 25 2005 2010 2015 2020 2025 High-income Upper-middle-income Lower-middle-income Low-income X Figure ES2. Global prime-age labour force participation rate by sex and household type, 2023 (percentage) Source: ILOSTAT, ILO modelled estimates, November 2024. 91 64 95 56 91 55 89 71 91 68 40 60 80 100 Total Couple with child under 6 Extended family with child under 6 Lone parent with child under 6 Household without child under 6 Men Women join it) reveals deeper disparities. A persistent 27-percentage-point gap in the labour force participation rate separates men and women. In large part, it is because women bear the majority of unpaid care responsibilities (76 per cent globally), which limits their access to paid employment. The high rate of youth not in employment, education or training (NEET) continues to present a challenge for younger people, particularly young women, whose NEET rate worldwide stood at 28 per cent in 2024. A comprehensive, pro-employment policy approach is needed, which aligns macroeconomic, sectoral and enterprise interventions with basic education and skills development and active labour market programmes, and which incorporates equality objectives to address structural barriers faced by women and other vulnerable groups. Education. Over a person’s lifetime, skills, knowledge and education open the door to opportunities in the labour market and elsewhere. Trends have also been positive over the last 30 years,

labour market programmes, and which incorporates equality objectives to address structural barriers faced by women and other vulnerable groups. Education. Over a person’s lifetime, skills, knowledge and education open the door to opportunities in the labour market and elsewhere. Trends have also been positive over the last 30 years, especially for girls and young women. Figure ES3 shows that lower secondary completion rates increased by 14 percentage points for boys and 21 points for girls from 2000 to 2023. X Figure ES3. Completion rates by education level and sex, 2000–23 (percentage) Source: UNESCO I nstitute for Statistics data (see https://uis.unesco.org). 79.7 86.8 74.9 89.1 63.1 76.6 57.6 78.7 39.0 58.0 35.9 61.0 30 40 50 60 70 80 90 100 2000 2005 2010 2015 2020 2025 Primary, boys Primary, girls Lower secondary, boys Lower secondary, girls Upper secondary, boys Upper secondary, girls6

The state of social justice: A work in progress Challenges remain, nevertheless, in learning outcomes and skill-job matches.

Enterprise development. The private sector accounts for almost 90 per cent of employment worldwide, with micro, small and medium-sized enterprises (MSMEs) accounting for around 70 per cent, which means productive enterprises, including MSMEs, are crucial for opening opportunities to all. However, they can suffer from a significant productivity gap compared to larger companies. Factors such as access to credit, technology and investment in worker training are critical for MSMEs to improve productivity and working conditions. Active labour market policies. Active labour market policies are crucial in opening opportunities for all in the world of work. They consist of the following: (i) tr aining programmes, which are effective when coordinated among stakeholders and tailored to both jobseeker and market needs; (ii) l abour intermediation services, which help match jobseekers to vacancies, thereby reducing search costs;

ties for all in the world of work. They consist of the following: (i) tr aining programmes, which are effective when coordinated among stakeholders and tailored to both jobseeker and market needs; (ii) l abour intermediation services, which help match jobseekers to vacancies, thereby reducing search costs; (iii) public emplo yment programmes, which provide income support and short-term employment, especially during economic downturns and in lower-income countries; (iv) emplo yment subsidies, such as wage subsidies and hiring incentives, which can help sustain employment during crises and ease transitions into industries of the future; (v) support for entr epreneurship and self-employment. A comprehensive pro-employment policy approach is needed to overcome barriers that prevent people from equal access to opportunities, particularly for decent and productive employment. Chapter 3: Fair distribution The concept of fair distribution seeks to ensure a just share of economic growth benefits, with particular emphasis on the most disadvantaged. This concept not only recognizes the normative value of fairness but also recognizes that high income inequality negatively impacts economic growth and stability, and contributes to social conflicts, crime, poverty, poor health and low social cohesion. While a fair distribution is not one of perfect equality – there will always be differences in wages, earnings, incomes and wealth as a reward for initiative, innovation and hard work – present income inequality levels remain unacceptably high. Despite reductions in labour income inequality since 1995, particularly between countries, wage inequality remains high, and many workers earn wages insufficient for a decent living. Although the share of total income held by the top 10 per cent fell 3 percentage points from 1995 to 2024, it remains unacceptably high at 53 per cent. The decline in global inequality is largely driven by middle-income countries catching up with high-income ones, while low-income countries continue to lag further behind. Poverty, working poverty and hunger (as measured by child stunting) have all fallen since 1995 (see figure ES4), although the improvement has stalled somewhat during the last 20 years.

by middle-income countries catching up with high-income ones, while low-income countries continue to lag further behind. Poverty, working poverty and hunger (as measured by child stunting) have all fallen since 1995 (see figure ES4), although the improvement has stalled somewhat during the last 20 years. With regard to the labour share of national income (see figure ES5), it has been increasing in lowand middle-income countries but decreasing in high-income countries. Due to the weight of high-income countries in global incomes, the worldwide trend is downwards. Certain groups – such as women and workers with disabilities – continue to face wage gaps driven by factors unrelated to job characteristics, skill levels, work experience or performance. Although women have made significant progress towards closing the earnings gap with men, they still earn only 75 per cent of what men do in high-income countries and only 46 per cent X Figure ES4. Global monetary poverty rates according to international poverty lines, 1990–2023 (percentage) Key: WSSD1 = first World Summit for Social Development.

Note: The break in the series is because of the COVID-19 pandemic, when many household surveys were interrupted.

Source: World Bank, “Poverty and Inequality Platform”.

71.3 47.0 53.7 19.3 39.3 10.2 0 20 40 60 80 1990 1995 2000 2005 2010 2015 2020 2025 US$8.30 a day US$4.20 a day US$3.00 a day WSSD1 X Figure ES5. Labour share of national income by country income group, 2004–25 (percentage) Source: ILOSTAT, ILO modelled estimates, May 2025. 55 57 49

47 54 52 38 36 30 35 40 45 50 55 60 2000 2005 2010 2015 2020 2025 High-income Upper-middle-income Lower-middle-income Low-incomeExecutive summary 7 A comprehensive pro-employment policy approach is needed to overcome barriers that prevent people from equal access to opportunities, particularly for decent and productive employment. Chapter 3: Fair distribution The concept of fair distribution seeks to ensure a just share of economic growth benefits, with particular emphasis on the most disadvantaged. This concept not only recognizes the normative value of fairness but also recognizes that high income inequality negatively impacts economic growth and stability, and contributes to social conflicts, crime, poverty, poor health and low social cohesion. While a fair distribution is not one of perfect equality – there will always be differences in wages, earnings, incomes and wealth as a reward for initiative, innovation and hard work – present income inequality levels remain unacceptably high. Despite reductions in labour income inequality since 1995, particularly between countries, wage inequality remains high, and many workers earn wages insufficient for a decent living. Although the share of total income held by the top 10per cent fell 3percentage points from 1995 to 2024, it remains unacceptably high at 53per cent. The decline in global inequality is largely driven by middle-income countries catching up with high-income ones, while low-income countries continue to lag further behind. Poverty, working poverty and hunger (as measured by child stunting) have all fallen since 1995 (see figureES4), although the improvement has stalled somewhat during the last 20years. With regard to the labour share of national income (see figure ES5), it has been increasing in lowand middle-income countries but decreasing in high-income countries. Due to the weight of high-income countries in global incomes, the worldwide trend is downwards.

Certain groups – such as women and workers with disabilities – continue to face wage gaps driven by factors unrelated to job characteristics, skill levels, work experience or performance. Although women have made significant progress towards closing the earnings gap with men, they still earn only 75per cent of what men do in high-income countries and only 46per cent X Figure ES4. Global monetary poverty rates according to international poverty lines, 1990–2023 (percentage) Key: WSSD1 = first World Summit for Social Development.

Note: The break in the series is because of the COVID-19 pandemic, when many household surveys were interrupted.

Source: World Bank, “Poverty and Inequality Platform”.

71.3 47.0 53.7 19.3 39.3 10.2 0 20 40 60 80 1990 1995 2000 2005 2010 2015 2020 2025 US$8.30 a day US$4.20 a day US$3.00 a day WSSD1 X Figure ES5. Labour share of national income by country income group, 2004–25 (percentage) Source: ILOSTAT, ILO modelled estimates, May 2025. 55 57 49 47 54 52 38 36 30 35 40 45 50 55 60 2000 2005 2010 2015 2020 2025 High-income Upper-middle-income Lower-middle-income Low-income in low-income countries. The gap between workers with and without disabilities has shown no signs of substantive reduction over the last decade and remains at 20 per cent for men and 46 per cent for women. Policies of fair distribution of market incomes and redistribution through taxes and social polices help ensure fair distribution. Policies for fair market outcomes. In addition to policies recommended in Chapter 2, two additional policies for more egalitarian market income distributions stand out: minimum wages and wage bargaining. Statutory or negotiated minimum wages serve as a key tool to address low pay and wage inequality. Their real value, averaged across countries, has increased substantially8

Policies for fair market outcomes. In addition to policies recommended in Chapter 2, two additional policies for more egalitarian market income distributions stand out: minimum wages and wage bargaining. Statutory or negotiated minimum wages serve as a key tool to address low pay and wage inequality. Their real value, averaged across countries, has increased substantially8

The state of social justice: A work in progress over the last 30 years. This increase has been highest in upper-middle-income countries and has coincided with falling wage inequality. In low-income countries, however, the average minimum wage has fallen by 44 per cent in real terms since 1995. In recent years, partly due to the absence of adequate minimum wage systems in many countries, attention has shifted to the concept of “living wages”, aimed at ensuring that workers earn enough to afford a decent standard of living.

Research consistently shows that unions and collective bargaining reduce wage inequality. However, global collective bargaining coverage is low (one third of employees) and unionization rates have been falling for decades. Policies for redistribution. Policies for redistribution, social security legislation and effective coverage have expanded significantly, with over half the world’s population covered by at least one scheme in 2023 (see figure ES6). However, it still means that almost half are excluded, and low-income countries lag significantly behind in terms of coverage. Social transfers are effective in reducing inequality, but fiscal capacity (tax collection) is a major constraint, especially in low-income countries. The redistribution systems of high-income countries are most effective at reducing inequality, but even lower-middle-income countries can achieve substantial reductions in income inequality. The median drop in inequality due to taxes and government transfers is 35 per cent in highincome countries, 7 per cent in upper-middle-income countries, 3 per cent in lower-middleincome countries and 3 per cent in low-income countries (see figure ES7). X Figure ES6. Effective social security coverage by population group, 2015 and 2023 (percentage)

Note: Sustainable Development Goal indicator 1.3.1.

income countries and 3 per cent in low-income countries (see figure ES7). X Figure ES6. Effective social security coverage by population group, 2015 and 2023 (percentage)

Note: Sustainable Development Goal indicator 1.3.1.

Source: ILO, World Social Protection Report 2024–26: Universal Social Protection for Climate Action and a Just Transition, 2024, figure 3.2.

37 37 17 52 39 80 36 28 33 27 15 43 33 74 30 22 0 20 40 60 80 100 Workers in case of work injury Vulnerable persons covered by social assistance Unemployed persons Population covered by at least one social protection benefit Persons with severe disabilities Older persons Mothers with newborns Children 2015 2023 X Figure ES7. Inequality reduction due to redistribution by country income group (percentage) Note: The numbers show the percentage reduction in income inequality (measured by the Gini coefficient) brought on by the redistribution system. For example, a country whose income inequality falls from 40 to 30 Gini points due to redistribution reduces its inequality by one quarter or 25per cent.

Source: Commitment to Equity Institute (see https://commitmentoequity.org); Organisation for Economic Co-operation and Development, “OECD Income Distribution Database (IDD)”.

47 27 23 5 35 7 3 34 2 0 20 10 20 30 40 50 High-income Upper-middleincome Lower-middleincome Low-income Maximum Median Minimum Chapter 4: Fair transitions We are faced today with a set of three simultaneous major transitions: environmental, digital and demographic. These global trends are creating structural economic changes that will lead to significant shifts in employment, as some enterprises shut down while new ones are created.

A society committed to social justice must ensure these transformations are fair for everyone, especially the most vulnerable. The term “fair transitions” in this report describes results that promote social justice across all societal transformations, leaving no one behind. Environmental. Climate change is driving increasingly severe impacts, such as heat stress, which affected 71 per cent of workers in 2024. Climate change will also lead to productivity losses, and vulnerable populatio