Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
The global job market is sending mixed signals this month. While unemployment in many wealthier nations remains low, changes in wages, participation, and job trends are exposing major differences between regions — and between workers themselves.
Here’s what you need to know, according to the World Economic Forum’s state of the global labor market roundup.Â
Unemployment Rates Stay Low, But That’s Not the Whole Story
On the surface, the global labor market looks stable. The average unemployment rate across advanced economies sits at 4.9%, according to the OECD — a figure that’s barely moved in three years.
But when you dig deeper, the global picture is far more uneven:
- Japan and Mexico have ultra-low unemployment (2.5% and 2.6%, respectively).
- South Africa continues to struggle with a staggering 32.9% unemployment rate.
- Brazil has hit its lowest jobless rate since 2012 at 5.8%, with wages also climbing.
- The U.K. is seeing wage growth (5% annually), but a cooling labor market.
- The U.S. reports steady unemployment at 4.2%, while wage growth slows.
So while joblessness is technically low in many places, the economic experience of workers varies widely.
The Real Pressure Point: Who’s Actually Working?
Looking only at unemployment doesn’t show the full picture because many people aren’t even counted in the workforce anymore.
- In the U.S., the labor force participation rate has dropped to 62.2%, influenced by early retirements and slower workforce growth despite higher immigration.
- New Zealand, by contrast, has a much higher rate at 70.5%, though it’s started to decline.
A low unemployment rate combined with low participation means fewer people available to hire, worsening skill shortages and increasing pressure on employers.
Five Forces Are Quietly Redefining the Job Market
Demographics, technology, economic, climate change, and global politics are now playing a central role in shaping the future of work. Together, these forces are fundamentally altering how, where, and why jobs are created, and who benefits.
1. Aging Rich Nations, Younger Poor Ones
Older populations in high-income countries are creating worker shortages, while younger populations in lower-income regions are entering job markets that can’t absorb them.
2. AI Is Changing Who Gets Hired
Artificial intelligence is reducing demand for some tasks but increasing demand for digital, cybersecurity, and data roles. Employers are rethinking job design from the ground up.
3. Climate Action = New Careers
Jobs tied to clean energy, EVs, and environmental management are growing fast, even as traditional industries are forced to adapt or downsize.
4. Slow Growth, High Costs
With many economies feeling the squeeze from inflation and weak growth, employers are more cautious even as workers look for more stability and pay increases.
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5. Trade Tensions and Policy Changes
Supply chain disruptions, new subsidies, and trade restrictions are increasing demand for skills in logistics, security, and geopolitical risk management.
Employers Are Holding Back But Planning Ahead
Companies are being cautious. Many are delaying hiring decisions as they assess market uncertainty. However, most also recognize that long-term change is unavoidable.
Top priorities for companies this year include:
- Reworking jobs to include AI tools
- Improving company culture to hold onto staff
- Using tech responsibly amid rising regulation
Bottom Line: The Job Market Is Stable But Not Settled
Even with solid headline numbers, global labor markets are facing unprecedented transformation. Between technological changes, climate challenges, and uneven recovery, the nature of work is changing — and not everyone is benefiting equally.
