Decent work, fair pay: building inclusive economies for a sustainable future
- Editorial Team SDG8
- Aug 25
- 3 min read
During an age marked by the Sustainable Development Goals (SDGs) serve as a blueprint for global progress, SDG 8, which champions sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all, stands as a cornerstone of societal advancement. This goal underscores the urgent need to foster economies that not only expand but also prioritise fairness, environmental stewardship, and resilience against disruptions. Addressing these imperatives is vital because persistent inequalities, such as the gender pay gap and skills mismatches, erode productivity and social cohesion, while inclusive growth drives poverty reduction and supports climate action. By championing decent work, nations can align economic progress with sustainability, creating a ripple effect that bolsters other SDGs, including gender equality (SDG 5) and reduced inequalities (SDG 10).
The gender pay disparity remains a formidable barrier to equitable economic participation. Globally, women earn approximately 71 cents for every euro men earn (based on an exchange rate of 1 USD = 0.92 EUR, derived from UN data indicating women earn 77 cents per dollar), with the gap widening to as low as 47 cents when factoring in unpaid care responsibilities that disproportionately disrupt women’s careers. In low-income countries, women undertake up to three times more unpaid care work than men, leading to fragmented employment histories and reduced lifetime earnings. Such disparities not only hinder individual prosperity but also impede economic growth, with the International Labour Organisation (ILO) estimating that closing the gender gap could boost global GDP by up to 26 percent by 2025.
Emerging challenges, such as supply chain vulnerabilities and rising inequality, necessitate robust policy responses. The COVID-19 pandemic and geopolitical tensions have exposed the fragility of global trade networks, amplifying job losses in sectors like manufacturing and agriculture. In 2024, the World Bank reported that supply chain disruptions contributed to a 1.5 percent decline in global trade growth, disproportionately affecting developing economies where informal employment accounts for over 60 percent of the workforce.
Meanwhile, inequality has surged, with the richest 1 percent capturing 63 percent of all new wealth created since 2020, according to Oxfam. These trends highlight the need for inclusive growth strategies that integrate social protections and equitable wage policies to build resilient economies.
Several organisations are spearheading initiatives to advance decent work and economic growth, aligning with SDG 8’s objectives. The International Labour Organisation (ILO), a UN specialised agency, promotes decent work through its Decent Work Agenda, focusing on job creation, rights at work, social protection, and social dialogue. Its Global Coalition for Social Justice supports skills training and childcare to address care-related career disruptions, while programmes like the Equal Pay International Coalition, launched with UN Women and the OECD, have narrowed the gender pay gap by 2.8 percent in EU member states from 2020 to 2024. Women in Informal Employment: Globalizing and Organizing (WIEGO) advocates for informal workers, particularly women, by promoting policies that ensure fair wages and social protections. WIEGO’s work with the UN’s Inter-Agency Task Force on Social and Solidarity Economy has influenced labour policies in 25 countries, enhancing protections for vulnerable workers. The United Nations Development Programme (UNDP) supports decent work through initiatives like the Joint SDG Fund programme in the Philippines, which facilitates regional consultations to integrate decent work into national development plans, focusing on job creation and social protection. These organisations exemplify how targeted interventions can foster equitable and sustainable economic systems.
Amid these challenges, inspiring initiatives are driving reform. The European Union’s Gender Equality Strategy has catalysed legislative changes, contributing to the aforementioned pay gap reduction. Similarly, the ILO’s “Advancing Decent Work in Bangladesh” project, funded by the EU and partners, strengthens labour inspections and promotes fair wages in the garment sector, a critical industry for the nation’s economy. These efforts underscore that policy reforms, when paired with private sector engagement, can create decent work environments that prioritise diversity and sustainability.
Trends in artificial intelligence (AI) and cleantech present both opportunities and challenges. AI is projected to create 97 million new jobs by 2025, per the World Economic Forum, but may displace 85 million others, necessitating reskilling in fields like data analysis and ethical AI governance. Cleantech, encompassing renewable energy and green technologies, could generate 42 million jobs globally by 2050, according to the International Renewable Energy Agency, provided education investments align with demand. This shift towards sustainable innovation requires inclusive vocational training programmes, particularly for underrepresented groups, to ensure economic growth benefits all.
Achieving SDG 8 demands a global effort that blends technical advancements with ethical considerations to create economies that are productive, just, and enduring. By addressing these multifaceted challenges, the international community can forge a path towards prosperity that aligns with planetary boundaries.
For further insights, explore the United Nations’ SDG 8 progress reports at https://sdgs.un.org/goals/goal8, the ILO’s decent work resources at https://www.ilo.org/topics/decent-work, and WIEGO’s initiatives at https://www.wiego.org.
