Charting the global economy: US jobs growth tops forecasts – The Economic Times

Global Economic Report: A Sustainable Development Goals Perspective

United States

SDG 8: Decent Work and Economic Growth

The U.S. labor market presented a complex picture concerning the goal of achieving full and productive employment and decent work for all. While employment growth surpassed expectations, underlying weaknesses suggest challenges to sustainable economic growth.

• Payrolls increased by 119,000 in September, indicating job creation.
• The unemployment rate rose to its highest level in nearly four years, signaling fragility in achieving stable employment.
• Consumer sentiment fell to a record low, driven by anxieties over job security and the high cost of living, which undermines economic confidence and stability.

SDG 10: Reduced Inequalities

The nature of job creation raises concerns about inclusive growth and reducing inequalities within the country.

1. Employment gains lacked broad distribution across industries.
2. Hiring was concentrated primarily in the health care and leisure and hospitality sectors, indicating that growth is not benefiting all segments of the workforce equally.

Europe

SDG 8: Decent Work and Economic Growth

The European region shows signs of resilience and moderate progress toward sustained economic growth, though future projections have been adjusted.

• The European Commission forecasts moderate economic expansion for the euro-area, with output projected to rise by 1.3% in 2025 and 1.2% in 2026.
• This represents an upgraded forecast for the current year, demonstrating resilience despite external pressures.

SDG 16: Peace, Justice, and Strong Institutions

Fiscal policy decisions in the United Kingdom reflect the influence of political stability on the strength and predictability of economic institutions.

• The UK Chancellor adjusted fiscal plans, shelving potential income-tax raises in response to internal political pressures.
• This highlights how political stability is crucial for maintaining predictable fiscal policies that support long-term economic goals.

SDG 17: Partnerships for the Goals

Trade dynamics between Switzerland and the United States illustrate the importance of international partnerships and fair trade policies for global economic health.

• Swiss exports to the U.S. declined in October amid trade volatility.
• An agreement to lower U.S. tariffs is a positive step toward strengthening this economic partnership and fostering more stable trade.

Asia

SDG 8: Decent Work and Economic Growth

Nations in Asia are implementing distinct fiscal strategies to navigate economic challenges and stimulate growth.

• Japan is set to unveil a significant stimulus package of ¥17.7 trillion ($112 billion) to promote economic activity.
• In contrast, China’s broad fiscal spending fell by 19% in October, the largest drop since 2021, potentially hindering a key driver of investment and economic growth.

SDG 16: Peace, Justice, and Strong Institutions

Geopolitical tensions between China and Japan pose a risk to regional stability and the strong institutions needed for sustained economic cooperation.

• Escalating confrontation over political comments threatens recent progress in bilateral relations.
• The potential for economic retribution could unravel partnerships essential for achieving shared development goals.

Emerging Markets

SDG 8: Decent Work and Economic Growth

Several emerging economies face significant headwinds, challenging their progress toward sustained and inclusive economic growth.

• Mexico’s economy contracted by 0.3% in the third quarter, largely due to a 2.7% annual decline in its industrial sector, impacting SDG 9 (Industry, Innovation, and Infrastructure).
• Brazil’s economic activity index dropped, signaling that high borrowing costs are impeding growth.

SDG 16: Peace, Justice, and Strong Institutions

Political instability and international tensions in Venezuela create an environment that undermines economic development and the well-being of its population, directly conflicting with the goal of fostering peaceful and inclusive societies.

• Talk of regime change and the presence of naval forces contribute to a volatile situation that discourages stable investment and long-term planning.

Global Monetary Policy and Institutional Stability

SDG 8 & SDG 16

Central banks worldwide are adjusting monetary policies to foster economic stability, reflecting the role of strong institutions in managing economic conditions.

1. Interest rates were lowered in South Africa, Angola, Uruguay, and Iceland to stimulate economic activity.
2. Borrowing costs were held unchanged in Hungary, Indonesia, Egypt, Eswatini, and Paraguay to maintain economic stability.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth: This is the most prominent SDG in the article. The text extensively discusses key economic indicators such as employment growth, unemployment rates, and overall economic activity across various regions, including the US, Europe, Asia, and Emerging Markets. The article’s focus on labor market conditions, GDP forecasts, and industrial sector performance directly aligns with the core objectives of promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
• SDG 17: Partnerships for the Goals: The article touches upon international trade relationships and policies, which are central to SDG 17, particularly its targets related to trade. It mentions “US tariff turmoil,” a trade deal between Switzerland and the US to lower tariffs, and geopolitical tensions between China and Japan that risk “unraveling recent progress in bilateral ties.” These examples highlight the complexities of global trade partnerships and their impact on economic stability.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries. The article directly addresses this target by reporting on economic growth figures. For instance, it states that the “European Commission penciled in slightly stronger euro-area economic growth” and provides specific forecasts like “Output will rise 1.3% in 2025.” It also reports on economic contraction in emerging markets, noting that “Mexico’s economy shrank 0.3% in the third quarter” and “Brazil’s economic activity fell slightly more than expected.”
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. The article’s detailed discussion of the US labor market connects directly to this target. It highlights the challenges in achieving full employment by stating that “US employment growth exceeded forecasts while the jobless rate ticked higher” and that the “unemployment rate, meanwhile, rose to its highest level in nearly four years.” The mention of job gains being narrow and “fueled primarily by hiring in health care and leisure and hospitality” also speaks to the quality and breadth of employment.
• Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system. The article implies challenges to this target by discussing trade disputes and tariffs. The mention of the euro-area weathering “US tariff turmoil” and a deal to lower “President Donald Trump’s 39% tariffs” on Swiss exports points to trade barriers that deviate from an open, rules-based system.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 8.1.1: Annual growth rate of real GDP per capita. The article provides several data points that serve as a proxy for this indicator. It mentions specific economic growth percentages for the euro-area (“Output will rise 1.3% in 2025”), economic shrinkage in Mexico (“shrank 0.3%”), and a decline in Brazil’s economic activity index (“dropped 0.24%”). These figures are direct measures of economic performance.
• Indicator 8.5.2: Unemployment rate. This indicator is explicitly mentioned and quantified in the article. The text states that the “jobless rate ticked higher in September” and specifies that the “unemployment rate, meanwhile, rose to its highest level in nearly four years” in the US. This provides a direct measurement of labor market health.
• Indicator 17.10.1: Worldwide weighted tariff-average. The article provides a specific example of this indicator by mentioning “President Donald Trump’s 39% tariffs” on Swiss exports. This data point directly reflects the level of trade barriers between nations.

SDGs, Targets, and Indicators Summary

Source: m.economictimes.com