Issue Brief

A look at the G20 South Africa Issue Note of the Employment Working Group

G20 and B20 Action on Employment

Rapid adoption of Artificial Intelligence (AI) and other advanced technologies in the workplace, along with emerging trends including global labour market shifts, demographic changes, and emergence of new forms of work are some key factors driving the future of work.

Given the evolving landscape of work, G20 South Africa’s employment pillar focuses on advocating for a future of work that goes beyond harnessing technological progress and fosters a fair, inclusive and resilient future of work in the long term. G20’s Employment Working Group has worked out key priorities to promote inclusive growth and reduce inequalities and other global challenges in the face of rising digitalisation.

B20, as the business engagement group of the G20 strengthens the G20 global dialogue and priorities by formulating policy recommendations and driving business engagement.

The G20 South Africa Employment Working Group (EWG) has outlined three key priorities in its issue note for the Employment theme under the three pillars of (i) inclusive growth and youth employment (ii) gender equality in the workforce and (iii) addressing inequality and a declining labour income share and the implications for living standards.

Priority 1: Inclusive growth and youth employment

The G20 South Africa Employment Working Group (EWG) will undertake efforts to reduce youth unemployment in the workforce through education, skill development and comprehensive job creation programmes. Efforts will focus on strengthening global dialogue and discussions on current global challenges including persistently high NEET rates (not in education, employment or training), gender inequality, low quality and low wage jobs, particularly in countries like South Africa.

A comprehensive and multifaceted approach is recommended for promoting inclusive growth through gender-responsive and sector-specific policies. This will include efforts aimed at increasing investments in education and skills aligned with current labour market demands, with a strong focus on skills for the future including digital literacy, emerging technologies and skills for green jobs. At the same time, providing access to finance, mentorship and comprehensive support networks will key priorities for fuelling the growth of youth owned businesses and creating sustainable enterprises. Setting up of robust and modern labour market institutions that can deliver efficient labour market services will be an imperative.

The importance of fostering inclusive labour market policies through universal social protection systems is emphasized for addressing issues of discrimination and unequal access, especially among unemployed youth and women for addressing the growing digital divide. Strong government-industry partnerships will be critical for empowering different groups and promoting inclusive economic growth.

Priority 2: Gender equality in the workforce

Reducing the gender gap in labour force participation rates through gender responsive employment policies is the second priority area for the EWG. This will include targeted measures to address persistent inequalities created by factors including those related to automation and technology as well as long standing deep rooted societal barriers including gender-based violence and harassment.

Efforts will concentrate on increasing women's representation and leadership in the fields of science, technology, engineering, and mathematics (STEM), as well as green and digital sectors. Emphasis is placed on measuring the impact of automation to provide appropriate support. Professionalising care work and strengthening social protection systems to address social barriers and create decent work opportunities across different sectors will be essential for promoting gender equality in the workforce. The aim is to drive outcome-oriented actions through collaborative solutions.

Priority 3: Addressing inequality and a declining labour income share and the implications for living standards

Addressing declining labour income shares to address rising inequalities for improving living standards is a core focus area of the G20 presidency. Improving the effectiveness of collective bargaining mechanisms will be a critical focus area in this regard as it can empower workers to negotiate fairer wages, ensure better working conditions and improve their access to improved benefit packages.

While collective bargaining agreements can improve living standards for workers and reduce inequalities by securing higher wages, addressing declining labour incomes will be a broader strategy for the presidency encompassing measures for ensuring adequate minimum wages, achieving living wages in line with ILO principles, putting in place progressive tax structures to redistribute wealth and strengthening labour and social protection systems.

Tackling challenges related to informal sector employment is another crucial focus area. Strengthening mechanisms for better representation and bargaining power of union memberships will be critical for improving wage and working conditions for workers belonging to any non-standard form of employment. Ensuring access to social protection including healthcare and unemployment insurance are also areas that needs focused attention.

Priority 4: Digitalisation and inclusive future of work

For addressing inequalities in the workplace due to the acceleration in advanced digital technologies including AI, the G20 presidency will initiate and enhance global dialogue on the need for promoting inclusive work in the face of rising digitalisation.

Conversations would encompass wide-ranging issues and global challenges including the need for promoting decent work in the digital economy including platform work, reskilling and upskilling the workforce tailored to current market requirements, implications for AI in the workforce including ethical considerations as well as social protection and security systems for promoting inclusive labour markets.

Possible Outcomes

The Employment theme positions South Africa as a global leader in advocating a future of work that is fair, inclusive and resilient. For promoting greater workplace inclusivity, the presidency will focus on efforts delivering on critical priorities including addressing unequal access to opportunities, addressing inequalities in the workforce arising out of rising digitalisation trends, promoting gender equality and improving living standards by addressing declining labour income shares.

Possible outcomes will focus on job-creation strategies with a focus on education and skill development, renewed focus on gender pay gaps within G20 countries for promoting equal value and equal pay for work, strengthening legal protection systems for enhanced social security and fair wages, and enhancing global dialogue on implications of digital technologies on work in G20 economies.

Read the full issue note here