The ILO is grappling with a massive budget shortfall, largely generated by funding cuts by the United States. The agency is expected to decide on measures to address the crisis in June.<\/p>\n
On 24 April, the International Labour Organization (ILO) reported that member states still owed the agency nearly CHF500 million in outstanding dues, a significant sum compared to its current operating budget of CHF926m.<\/p>\n
In March, due to the gravity of the situation, the ILO\u2019s governing body looked into various cost-cutting plans in case the funding shortfall persisted. These included cutting up to 350 out of the roughly 1,600 jobs at headquarters Geneva, which would be another major blow to international Geneva. Since Donald Trump\u2019s return to the White House in January 2025, the United States president significantly reduced, and at times cancelled, contributions to the United Nations and its agencies.<\/p>\n
The ILO, mandated to \u201cadvance social justice and promote decent work,\u201d told Le Temps that \u201cat this stage no job cuts have been approved,\u201d adding nonetheless that it was \u201cpreparing, as a last resort,\u201d for cuts, which could amount to \u201croughly 350 staff, as well as a hiring freeze\u201d. The agency said a decision will be made in June, according to how contributions from its 187 member states evolve. But for 2026 and 2027, at least 20 per cent of budgeted funding has gone unpaid. The ILO formally requested member states to pay their contributions.<\/p>\n
Possible savings scenarios<\/p>\n
The governing body considered two possible scenarios. The first, based on \u201crevenue in line with usual trends,\u201d aims to improve operational efficiency and continue the \u201congoing reform process\u201d over the next 18 months. It targets savings of CHF82.5m on programmes, and the possible elimination of 120 jobs.<\/p>\n
The second scenario, based on a confirmed revenue shortfall, intended to \u201caccelerate cost reductions,\u201d would allow for CHF186m in savings. However, 60 per cent of that would come from staffing cuts, affecting 21 per cent of the ILO\u2019s workforce. (As of July last year, the ILO had a global headcount of around 3650 people. Earlier in 2025, the organisation already cut around 190 staff and reassigned 92 to other roles – Ed.)<\/p>\n
In addition to outstanding contributions from 2025 remaining unpaid, many payments have still not been made this year. Roughly 70 donor countries, including Switzerland, France, Brazil and Russia, have paid their contributions in full. Another group of 14 countries, including Germany, have only partially paid their dues.\u00a0 Berlin\u2019s contribution is the most significant shortfall, with only CHF10.8m, half of what it owes, paid to date.<\/p>\n
The defaulters<\/p>\n
A third group of countries that have failed to pay anything this year comprises around 100 states including Argentina, China, Italy, Japan, Spain, Iran and the Netherlands, as well as the United States, which accounts for CHF256m in unpaid bills alone. A source familiar with the discussions, who requested anonymity, described a \u201cstrange game\u201d between donors, caught between professed support for multilateralism and ambitions for certain agencies to relocate to their capitals.<\/p>\n
Trump has repeatedly made hostile statements toward UN bodies and, from the outset of his term, slashed the budget his country devotes to international cooperation, previously channeled through USAid.<\/p>\n