World News in Brief: Global Economy Is On Its Brink, Ending Slavery, Latin American Jobs Update.

December 2025: Global Economy is On its Brink – Global economic growth has plummeted to 2.6% in 2025, down from 2.9% in 2024, as global trade and investment face growing pressure from financial volatility and geopolitical uncertainty, according to a new report by the UN Trade and Development body (UNCTAD).

Shifts in financial markets now move global trade almost as strongly as actual economic activity, shaping prospects for developing countries in particular. “Trade is not just a chain of suppliers. It is also a chain of credit lines, payment systems, currency markets and capital flows”, said Rebeca Grynspan, UNCTAD Secretary-General.

Developing economies are growing faster than advanced ones, but high borrowing costs, financial market volatility, and climate risks are limiting their ability to invest and sustain growth, the report highlights. Climate vulnerability adds to financial pressures. Countries repeatedly exposed to extreme weather now pay an estimated 20 billion dollars more each year in interest because lenders perceive them as riskier, according to UNCTAD.  

At the same time, the United States dollar remains central to global finance, even as some diversification takes place. Its share of cross-border payments through the SWIFT electronic transfer system has risen sharply, from 39% to about 50% in five years, and the United States continues to dominate global stock and bond markets. While this can bring some stability during financial shocks, it also means developing countries are ever more exposed to US financial cycles that they have little power to shape, UNCTAD said.

Modern slavery is on the rise – Latest estimates by the International Labour Organisation (ILO) show that forced labour and forced marriage have increased significantly in the last five years. 10 million more people were in modern slavery in 2021 compared to 2016 global estimates, bringing the total to 50 million worldwide. Women and children remain disproportionately vulnerable.

Although modern slavery is not defined in law, it is used as an umbrella term covering practices such as forced labour, debt bondage, forced marriage, and human trafficking. Essentially, it refers to situations of exploitation that a person cannot refuse or leave because of threats, violence, coercion, deception, and/or abuse of power.

Modern slavery occurs in almost every country in the world, and cuts across ethnic, cultural and religious lines. More than half constituting 52% of all forced labour and a quarter of all forced marriages can be found in upper-middle income or high-income countries. ILO has adopted a legally binding Protocol designed to strengthen global efforts to eliminate forced labour, which entered into force in November 2016.

The horrendous fact remains that the annual global profit generated from forced labour is estimated at US$236 billion. This amount represents wages effectively stolen from workers, particularly affecting those already struggling to support their families. For migrant workers, it means less money being sent back home. Additionally, governments lose tax revenue due to the illegal nature of these profits, which can also foster further exploitation, empower criminal networks, and undermine the rule of law.

The Profits and Poverty report aims to shed light on these illegal gains. It reveals that the profits are alarmingly high and have surged over the past decade, driven by an increase in forced labour and higher profits per victim.

According to the ILO, there were 27.6 million people in forced labour worldwide in 2021. From 2016 to 2021, the number increased by 2.7 million, mostly due to privately imposed forced labour. No region is exempt from the problem, with Asia and the Pacific having the highest number (15.1 million), followed by Europe and Central Asia (4.1 million), Africa (3.8 million), the Americas (3.6 million) and the Arab States (0.9 million).

However, in terms of prevalence, forced labour is most common in the Arab States (5.3 per thousand), followed by Europe and Central Asia (4.4), the Americas and Asia and the Pacific (both 3.5) and Africa (2.9). Most forced labour takes place in the private sector, with 86% of cases imposed by private actors, resulting 63% for labour exploitation and 23% for sexual exploitation. State-imposed forced labour accounts for the remaining 14%. The main sectors affected are industry, services, agriculture and domestic work, which together account for 89% of forced labour cases. There are also smaller sectors such as forced begging and involvement in illegal activities.

Latin American Jobs – More than 80% of agricultural employment in Latin America continues to operate under informal labour arrangements, where workers lack formal protection and social security.

Women, youth and older persons in rural areas continue to be disproportionately affected according to a new report by the International Labour Organization (ILO) and the Food and Agriculture Organization of the United Nations (FAO). The report reveals that 86.4% of women work in informal jobs, compared to 78% of men.

The informal sector also accounts for 46% of all child labour in the region, while more than half of the workforce has low levels of education. While some progress has been made in Latin America, between 2019 and 2023, nearly half of all young workers in the sector, along with the vast majority of women continue to be employed informally, the UN agencies noted.

The report identifies structural gaps in productivity, income and access to social protection as persistent barriers to advancing decent work in the sector. Despite its vital role in food security, agricultural employment continues to face challenges related to low levels of education, precarious working conditions, and high exposure to environmental and climate-related risks.

“Informality remains one of the most entrenched obstacles to social justice and sustainable development in Latin America. This report provides a roadmap to tackle it through integrated policies with a territorial approach”, as voiced by Ana Virginia Moreira Gomes, ILO Regional Director for Latin America and the Caribbean

“The study aligns with ILO Recommendation No. 204, the FORLAC 2.0 strategy, and the Joint Programme currently being developed by both organizations to accelerate the formalization of rural employment”, Moreira Gomes added.

“Securing decent work in the agricultural sector is not only about improving labour conditions; it is about strengthening our countries’ resilience, ensuring food security for millions, and enhancing the region’s capacity to face global challenges”, emphasised René Orellana, FAO Assistant Director-General and Regional Representative for Latin America and the Caribbean. He also called for stronger rural digitalization, sustained financing and inclusive social dialogue.

According to the report, the informal employment rate among women is 86.4%, compared to 78% among men. Some 38.5% of women are engaged in unpaid family work, five times the rate observed among men. The sector also accounts for 46% of all child labour in the region, and over half of the workforce has low educational attainment. Seasonal work patterns, lack of formal contracts and part-time schedules further undermine job quality.

Between 2019 and 2023, the overall volume of agricultural employment remained stable, but with no significant progress towards formalization. Nearly half of all young people in the sector and the vast majority of women continue to work informally. The report also examines 35 public policy initiatives across the region. While many aim to enhance rural productivity, few explicitly target employment formalisation or incorporate a clear gender perspective.

Importantly, the report outlines ten concrete policy recommendations to accelerate the transition to formality and ensure decent work in the agricultural sector. These measures, grounded in evidence and regional experience, seek to integrate productive development, social protection, labour rights and social dialogue transforming high informality into sustainable opportunities for millions of rural workers.

Both organisations reaffirm their commitment to supporting governments, employers and workers in designing and implementing integrated policies that can turn the agricultural sector into a true driver of decent employment, food security and sustainability across Latin America. This is not just an aspiration; it is an urgent imperative to ensure that the sector’s productive dynamism translates into real opportunities and a fairer future for rural communities.

Team Maverick.