As geopolitical conflicts and political tensions persist, a new report from the International Bar Association has warned that these forces will continue to profoundly disrupt workforces and place unprecedented strain on employee wellbeing.
A new report from the International Bar Association’s (IBA) Global Employment Institute (GEI) reveals that ongoing geopolitical conflicts, trade disputes, and political tensions are profoundly disrupting global trade, reshaping workforce structures, and placing a mounting strain on employee wellbeing.
The Global War, Global Trade: A Global Employment Institute Perspective report is based on a recent survey conducted by the GEI, in which lawyers from 52 countries identified key international trends in human resources law.
The report provided a detailed analysis of how socio-political events are shaping employment patterns and transforming organisational cultures across sectors worldwide.
Notably, it highlighted trade disputes – especially between the United States and China, and the US and European Union – as major drivers of rising costs, inflation, and supply chain disruptions in critical sectors such as manufacturing, agriculture, and technology.
Additionally, the report underscores that North American trade dynamics, especially the US–Mexico–Canada Agreement (USMCA), continue to shape employment in the automotive, electronics, and energy sectors, although their future remains uncertain due to ongoing political volatility.
In response to these persistent pressures, the GEI identified that businesses are being forced to adapt by reassessing their “workplace policies, ceasing production operations, reducing workforces, upskilling staff and/or sourcing new markets to navigate functioning opportunities”.
For workers, these changes have translated into “more unstable work environments and reductions in wage value due to inflation”.
Philip Berkowitz, GEI council officer and author of the report, emphasised the importance for lawyers and human resources professionals to continuously evaluate the impact of global conflicts on the workplace.
“As lawyers and human resource professionals, it is crucial to regularly assess the impact of global conflicts. Rising migration flows, sanctions, and tariffs are creating economic and social disorder that will likely persist for many years,” Berkowitz said.
Valeria Morosini, GEI council officer, warned that while global disruptions are impacting trade and employment, they are also significantly affecting workplace harmony and employees’ mental health.
“The report demonstrates that this labyrinth of disruption also affects mental health and workplace harmony. Employees’ opinions and consciences on global issues can influence organisational culture, making it essential for companies to manage conflicting views thoughtfully to minimise disruption,” Morosini said.
“Furthermore, with the growing role of AI in HR, legal practitioners must navigate the intersection of AI governance, privacy laws and employment law to ensure responsible deployment and compliance.”
In response to these challenges, the GEI report concludes that global conflicts, trade tensions, the climate crisis, and technological advancements “will continue to influence human resources policies and practices”.
The evolving landscape demands that legal and HR professionals address complex issues with “resilience, adaptability, and a commitment to ethical standards”.
