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ILO Warns of Possible Job Cuts as Member States Owe $323 Million in Contributions

ILO Warns of Possible Job Cuts as Member States Owe $323 Million in Contributions


The International Labour Organization (ILO) has raised alarm over potential job losses within the agency as member countries continue to owe a staggering $323 million in unpaid contributions.

According to reports, the financial shortfall has severely strained the UN agency’s operational budget, prompting warnings of staff reductions and the suspension of key programs if urgent payments are not made.

ILO Director-General Gilbert F. Houngbo expressed concern about the organization’s ability to sustain its global labour initiatives amid the growing debt crisis.

“The financial situation is extremely serious. Without the prompt settlement of outstanding contributions, we will be forced to make difficult decisions, including potential job cuts,” Houngbo said.

The ILO, which promotes social justice and internationally recognized labour rights, relies on funding from its 187 member states. However, delayed or defaulted payments especially from several major contributors have placed the organization under unprecedented pressure.

Insiders reveal that the budget crisis could affect critical projects supporting employment creation, workers’ rights, and social protection in developing countries.

“Many of our technical cooperation programs are already being scaled back due to lack of funds,” a senior official reportedly stated.

The ILO has called on all member nations to honor their financial obligations immediately to prevent disruptions in ongoing projects and maintain the organization’s ability to deliver on its mandate.

Observers say the situation underscores a broader challenge facing international agencies that depend on voluntary state contributions, warning that failure to act swiftly could jeopardize global labour reforms and the protection of workers’ rights worldwide.

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