The New Social Contract and Workers' Organizations

The world is undergoing a profound transformation, reshaped by shifting globalization patterns, rapid technological breakthroughs, and the escalating climate crisis. These forces are not only redefining industries but also disrupting the world of work, threatening sustainable economic development and social cohesion across nations.

Many governments are struggling to uphold their commitments to citizens as their regulatory frameworks fail to keep pace with the evolving nature of work. This is particularly evident in the impact of technological change. The rise of digital platforms, artificial intelligence, and automation is not just altering jobs—it is dismantling traditional employment models. Secure, long-term positions are being replaced by gig work, short-term contracts, and self-employment, often leaving workers without basic labor protections such as social security or collective bargaining rights.

While technological innovation can drive progress, it also risks deepening inequalities. The digital divide is widening, both within and between nations, leaving millions behind in an increasingly tech-driven economy. As automation and AI reshape labor markets, the challenge is not just job creation but ensuring that these jobs provide dignity, security, and fair wages.

At the same time, the world finds itself in a poly-crisis: recovering from a global pandemic while facing geopolitical turbulence that is fundamentally altering economic landscapes. Inflationary pressures, shifting macroeconomic policies, and fiscal constraints are placing additional stress on workers, particularly in economies that have spent decades under liberal economic policies. Deregulation, privatization, and financialization—once seen as drivers of growth—have, in many cases, eroded workers’ rights and deepened economic disparities. Without a deliberate shift toward policies that promote decent work and social equity, the risk of further instability looms large.

A Call for a New Social Contract

In response to these challenges, the concept of a new social contract has emerged—a bold framework aimed at reimagining the relationship between the state and its people. This renewed contract seeks to foster social justice, ensure inclusivity across economic and social dimensions, and equip societies with the agility to navigate rapid and far-reaching changes.

At the heart of this transformation lie workers and their organizations. Trade unions, as the largest membership-based institutions in the world, play a pivotal role in shaping economic and labor policies. They must not only defend existing labor rights but also evolve to protect workers in emerging forms of employment. To remain relevant in a fast-changing world, unions must innovate, strengthen their advocacy, and forge alliances that amplify their influence in policymaking.

Towards the Second World Summit for Social Development

In preparation for the Second World Summit for Social Development in November 2025, the ILO’s Bureau for Workers’ Activities is organizing a series of regional discussions to:

1. Create a platform for dialogue among trade unions, governments, employer representatives, and academics to explore the evolving social contract, with a particular focus on macroeconomic policies and technological advancements.
2. Facilitate the exchange of good practices and strategies to empower trade unions in shaping policy responses to pressing economic and social challenges.
3. Develop actionable recommendations to strengthen the role of governments, employers, and workers’ organizations in forging a more just and inclusive labor market.