The International Labour Organisation (ILO) Director-General, Gilbert Houngbo, has charged global leaders on policies that ensure productivity gains, including those generated by AI, are more widely shared, strengthening workers’ incomes, job quality and social protection while fostering inclusive and resilient economies.
The labour expert gave the charge in a statement to the Development Committee and International Monetary and Financial Committee at the 2026 Annual Meetings, in Bangkok, Thailand.
Houngbo noted that headline labour market indicators had remained broadly stable, but this stability masks underlying fragilities. Shocks such as the spillovers from the conflict in the Middle East are being absorbed not only through unemployment, but also through weaker hiring, lower real incomes, persistent informality and deteriorating job quality and working conditions.
Also, he stated that productivity gains were not reliably reaching workers, and that globally the gap between productivity and workers’ incomes remains substantial, especially in low-income countries. While this gap narrowed for a time, further convergence has since been limited, and in high-income countries it has widened.
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The ILO boss observed that productivity growth itself had been weakest where it is most needed. Low-income countries continue to face large and persistent productivity gaps, limiting the scope for the sustained improvements in living standards and jobs.
He pointed out that market concentration may be one factor limiting the broad sharing of productivity gains. SMEs, where a large share of employment is concentrated, often face persistent productivity gaps and disadvantages in access to finance, technology and markets, while economic activity and capital are increasingly concentrated among a relatively small number of large firms, including in the technology sector.
Houngbo maintained that at the same time, limited worker bargaining power, weak collective bargaining coverage and labour market imbalances can constrain wage growth, particularly for women, young people and rural workers. Artificial intelligence could reinforce some of these dynamics, and in many developing countries the adjustment pressures associated with AI may emerge before its productivity benefits are fully realized.
He further clarified: “These imbalances are macro-critical. The prevalence of low-pay, low-productivity jobs can constrain skills development, domestic demand and the tax base, while leaving households more vulnerable to shocks. Where the gains from growth are not broadly shared, trust in institutions and social cohesion can also come under pressure, making sustained reform more difficult. Strong labour market institutions are therefore part of the foundations of resilient and inclusive growth.
“Policy can help ensure that the gains from economic transformation reach a wider share of society. Respect for rights at work, collective bargaining and adequate minimum wages, competition and labour market policies that widen workers’ options, support for SMEs to access finance and technology, and sustainably financed social protection can all help translate productivity growth into higher and more widely distributed living standards, while preserving incentives for innovation and investment.
“The international financial institutions have an important role to play. The distribution of productivity gains, evolving market structures and job quality merit greater attention in macroeconomic analysis, policy advice and, where relevant, programme design. Greater attention to rights at work and labour market institutions can also help ensure that reforms strengthen, rather than weaken, the foundations of inclusive growth. The World Bank Group’s renewed focus on jobs provides a real opportunity to support jobs that raise productivity, income and skills, and continued ILO–World Bank Group collaboration on jobs measurement and on integrating job quality into development metrics is a valuable step in this direction”, Houngbo added.
He concluded that ultimately, economic stability and social justice remained closely connected, adding that “productivity growth that translates into better incomes, jobs that allow people to learn and advance, and institutions that give workers and enterprises a voice are important foundations for resilient economies and inclusive societies.”
