Global Job Losses Predicted Due to Trade War
The United Nations assumes that millions will disappear from potential jobs this year, since the trade war of US President Donald Trump is triggered.
Economic Outlook and Job Creation
The International Labor Organization (IAO), an UN agency, predicts that 53 million jobs are created worldwide in 2025 – 7 million fewer than previously assumed – due to a wilder economic outlook caused by trade disorders and geopolitical tensions.
Impact of Trade Disputes on Global Economy
The agency based its analysis on the downgraded expectations of the International Monetary Fund to the global economy. In April, the IMF said that global GDP would increase by 2.8% this year, which is due to an earlier estimate of 3.2%, citing the uncertainty, which was unleashed by Trump’s flood of new tariffs on America’s trading partners.
Vulnerable Jobs and Regions
The IAO, which promotes labor rights worldwide, also said that almost 84 million jobs in 71 countries "are directly or indirectly associated with the US consumer demand" and are therefore susceptible to the effects of these tariffs. Almost 56 million of these endangered roles are added to the Asian-Pacific region, adding more than 13 million Canada and Mexico.
Risks for Employees
"Employees who are bound by consumption and investment demand in the United States … are now exposed to increased risks for partial or total loss of income due to higher tariffs and the unpredictability of future trade measures," said the agency.
Trade Tensions and Tariffs
Since Trump again exceeded the office in January in January, he has increased the import duties on America’s trading partners and important goods, including cars and steel. The President set July 9th as the date on which he wants to be punished in order to impose a criminal "mutual tariffs" on other countries, unless these nations can conclude a trade agreement with Washington.
Impact on Hiring and Global Economy
The tariffs, their irregular implementation and unpredictability have considered both into the global economy, many companies and consumers. The ILO found that employers could possibly be "more cautious" when hiring new workers in such a uncertain landscape.
Conclusion
"We know that the global economy grows more slowly than we expected," said the General Director of the IAO, in an explanation. "If geopolitical tensions and trade disorders continue, you will certainly have negative wave effects on the labor markets worldwide."
