ILO Chief Calls for Just Economic Transformation Amid AI Disruption and Geopolitical Shifts

Houngbo underscored the importance of recalibrating global trade to ensure it fosters not just economic growth, but also social justice.

In an impassioned call for a more equitable global labour system, Gilbert F. Houngbo, Director-General of the International Labour Organization (ILO), urged governments, employers, and workers worldwide to recommit to foundational labour principles, social protection, and inclusive policy-making during a two-day official visit to the Kingdom of Bahrain from April 28–29, 2025.

Houngbo’s visit centered on participation in the Bab Al Bahrain Forum, a prestigious platform organized by the Bahrain Chamber of Commerce and Industry (BCCI) to foster dialogue on sustainable development, global trade, and employment trends. His participation coincided with mounting geopolitical tensions, rising global trade fragmentation, and accelerating technological disruption—challenges that Houngbo warned are reshaping labour markets and economic systems in unpredictable ways.

Strengthening the Labour-Trade Nexus

Speaking at the Forum’s high-profile opening panel, “Navigating Economic Transformation: The Impact of Shifting Global Blocs on Stability and Growth,” Houngbo shared the stage with World Trade Organization Director-General Ngozi Okonjo-Iweala, Bahrain’s Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa, and Gulf Cooperation Council (GCC) Secretary-General Jassim Al-Budaiwi.

Houngbo underscored the importance of recalibrating global trade to ensure it fosters not just economic growth, but also social justice. He argued that raising trade tariffs and tightening trade blocs could backfire, especially in the absence of robust labour protections and inclusive policy responses. “Fairer trade policies and resilient supply chains must be grounded in decent work,” he stressed.

He called on countries to proactively shape labour markets through social dialogue, targeted policies, and worker-employer-government collaboration, advocating for the universal application of fundamental rights at work.

Addressing the AI and Climate Imperatives

Beyond trade, Houngbo highlighted the transformational impact of artificial intelligence (AI) and climate change, which are both rapidly reshaping the global employment landscape. He warned of a widening gap between the skills workers have and those that modern labour markets require—particularly in the green and digital economies.

In response, he called for comprehensive skills development strategies, aligned closely with market needs. “We need stronger partnerships between educational institutions and industries,” he said, urging governments to build bridges that ensure lifelong learning and continuous workforce development.

Social protection, Houngbo emphasized, must also be a cornerstone of this transformation. He advocated for inclusive, robust systems that shield workers—especially vulnerable and migrant populations—from job losses and economic shocks.

Reaffirming Regional Solidarity Through Tripartism

Houngbo’s mission to Bahrain also included a series of strategic high-level meetings aimed at bolstering cooperation across the GCC. He met with Bahrain’s Minister of Legal Affairs and Acting Minister of Labour, Yousif bin Abdul-Hussain Khalaf; Mohammed Al Obaidli, Director-General of the Executive Bureau of the Council of Ministers of Labour and Ministers of Social Affairs in GCC states; and BCCI leadership including Chairman Samir Abdullah Nass and Board Member Sonya Janahi, an Employer Member of the ILO Governing Body.

The centerpiece of his engagements was a tripartite meeting, bringing together representatives from Bahrain’s Ministry of Labour, the BCCI, the General Federation of Workers Trade Unions in Bahrain (GFBTU), and the Bahrain Free Labour Unions Federation (BFLUF). These discussions revolved around decent work, improved labour governance, and institutionalizing social dialogue to shape more responsive and participatory labour reforms.

“Tripartite social dialogue is not just a tool—it’s an imperative,” Houngbo declared. “It ensures that productivity gains do not come at the cost of workers’ rights and that economic decisions are made collectively.”

Towards a Decent Work Country Programme for Bahrain

During the visit, Houngbo reaffirmed the ILO’s commitment to deepening partnerships with Bahrain and the broader GCC region. He welcomed ongoing and future collaboration on regional ILO initiatives, including projects on fair recruitment practices, migrant worker protection, and expanding social protection systems.

He expressed the ILO’s readiness to support Bahrain in developing a Decent Work Country Programme (DWCP)—a nationally tailored roadmap for achieving inclusive and sustainable labour outcomes, aligned with Bahrain’s Vision 2030.

“Bahrain and its neighbors are uniquely positioned to lead the world in redefining economic transformation,” Houngbo concluded. “A rights-based, inclusive model rooted in fairness and opportunity is within reach—and the ILO is proud to be a partner in that journey.”