ILO Unveils Innovative Tool to Enhance Labour Governance Systems

The International Labour Organization (ILO) has introduced a pioneering set of governance indicators designed to help labour administration systems worldwide operate more effectively in the face of accelerating technological, demographic, and economic transformation.

Developed through collaboration with ministries of labour representing diverse legal, political, and regional contexts, these indicators aim to translate the UN’s Principles of Effective Governance into practical, measurable benchmarks for policymaking and institutional performance.

The ILO’s initiative marks a major milestone in its efforts to support inclusive, adaptive, and accountable labour governance systems, particularly as countries strive to manage the evolving world of work amid globalization, automation, and the green transition.

Turning Principles into Practice

The newly introduced indicators build on the United Nations Committee of Experts on Public Administration (CEPA) framework, which defines 11 core principles of effective governance—including accountability, transparency, participation, integrity, and competence.

ILO experts have refined these broad principles into a concrete, labour-specific framework that allows governments to assess governance performance, identify gaps, and strengthen institutional resilience.

The tool comprises three interrelated subsets:

1. Whole-of-ministry indicators – measuring the overall effectiveness of ministries of labour, including their capacity for strategic planning, policy coordination, and inter-ministerial collaboration.

2. Service-specific indicators – focusing on key operational areas such as labour inspection, public employment services, social dialogue, and research and analysis.

3. Governance index – a consolidated, composite score providing a system-level picture of performance and helping decision-makers monitor progress over time.

Strengthening Labour Administration in a Changing World

Labour administrations play a central role in social and economic governance, ensuring fair employment frameworks, enforcing labour standards, and fostering trust between workers, employers, and governments.

Yet, in many countries, these systems are under pressure. The rapid pace of digitalization, the emergence of new forms of employment, the need for climate-resilient jobs, and demographic shifts are reshaping the nature of work and the institutions that regulate it.

“Effective labour administration is the backbone of good governance in the world of work,” said an ILO spokesperson. “These new indicators help countries strengthen their systems, manage complexity, and ensure that no one is left behind in the transition to more sustainable economies.”

By providing a structured framework for evaluation and reform, the indicators help governments move beyond traditional process-based assessments and focus on outcomes and real-world impact—from safer workplaces and fairer wages to more inclusive labour markets.

A Flexible, Non-Comparative Framework

The ILO emphasized that the indicators are not designed for cross-country ranking or competition but for self-assessment, learning, and continuous improvement.

They are meant to complement other instruments—such as national surveys, administrative data, and stakeholder consultations—to provide a holistic understanding of governance performance.

Their flexible design allows adaptation to different institutional models, legal traditions, and development levels. Whether used in low-income economies modernizing basic labour functions or advanced economies refining digital service delivery, the indicators can be tailored to local priorities.

Key Areas of Application

The governance indicators can support progress in several areas critical to decent work and sustainable development, including:

• Improving labour inspection systems, ensuring better compliance with occupational safety and health standards.

• Enhancing public employment services, to support jobseekers and employers more effectively, particularly in times of economic transition.

• Strengthening social dialogue mechanisms, promoting collective bargaining, mediation, and dispute resolution.

• Advancing data-driven research, enabling labour ministries to make informed, evidence-based policy decisions.

The indicators also support risk management and institutional modernization, helping senior leaders align their operations with international labour standards and the ILO’s Centenary Declaration for the Future of Work.

Supporting Implementation: ILO Technical Assistance

To facilitate practical use, the ILO will offer technical assistance, training, and capacity-building support to governments adopting the new framework.

Pilot applications are expected to begin in several countries across Africa, Asia, Latin America, and Eastern Europe, where ministries of labour have already expressed interest in using the tool to enhance transparency, accountability, and service quality.

The organization will also work with national labour observatories, universities, and civil society partners to strengthen data collection and ensure stakeholder engagement in the implementation process.

“This initiative is about turning governance into a living practice,” said an ILO governance expert. “By measuring how well institutions serve people—not just what they do—we can build stronger, fairer, and more resilient labour systems worldwide.”

A Step Toward the SDGs and Decent Work for All

The introduction of these indicators is part of the ILO’s contribution to the 2030 Agenda for Sustainable Development, particularly Goal 8 (Decent Work and Economic Growth) and Goal 16 (Peace, Justice, and Strong Institutions).

By helping governments strengthen governance capacity and improve coordination across sectors, the indicators aim to foster inclusive economic growth, reduce inequalities, and reinforce social peace and stability.

In an era of profound change—where automation, migration, and environmental shifts are redefining employment—effective governance of the labour market is more crucial than ever.

Building the Future of Work on Stronger Foundations

With this initiative, the ILO reaffirms its leadership in advancing good governance, institutional effectiveness, and social justice. By supporting governments in using data-driven insights to guide reform, the organization seeks to ensure that labour administration systems remain responsive, transparent, and people-centered.

Ultimately, these indicators represent more than a measurement tool—they are a blueprint for better public service delivery, fairer labour markets, and greater trust between governments and citizens.

As the ILO noted, “Stronger governance means stronger institutions—and stronger institutions mean better lives for workers and employers alike.”