Global unemployment is predicted to climb in 2024, with rising inequality and stagnating productivity further raising concerns about the economic outlook, according to the International Labour Organisation (ILO).
According to the World Employment and Social Outlook Trends 2024 study, slightly over 5% of the world's workforce is unemployed. The ILO issued the warning.
This is a better condition than it was before the pandemic, but it is unlikely to remain, as an additional two million people are projected to hunt for work over the next year, according to the ILO.
The UN agency’s findings chime with a new World Bank report released on Tuesday, indicating that the global economy is on track for the slowest half-decade of growth in 30 years.
In addition to the uncertain jobs market outlook, ILO noted that the majority of the world’s richest nations had seen living standards eroded, because of inflation, which is now in decline in many major economies.
The erosion of living standards resulting from inflation is,“unlikely to be compensated quickly”, the UN agency said.
ILO experts underscored that there were significant differences between higher and lower income countries. While the jobs gap rate (the number of jobless who are looking for work) in 2023 was 8.2 per cent in richer nations, it stood at 20.5 per cent in poorer countries.
Similarly, while the 2023 unemployment rate stuck at 4.5 per cent for wealthier countries, it was 5.7 per cent in low-income countries.
ILO Director-General, Gilbert Houngbo warned that “falling living standards and weak productivity combined with persistent inflation create the conditions for greater inequality and undermine efforts to achieve social justice.
“And without greater social justice we will never have a sustainable recovery.” He called for workforce challenges overall to be tackled quickly and effectively.”
Despite quickly declining after 2020, the number of workers living in extreme poverty (earning less than US$2.15 per person per day) grew by about a million in 2023.
“Income inequality has also widened, the trends show the erosion of real disposable income, bodes ill for aggregate demand and a more sustained economic recovery.”
Despite various policy initiatives to tackle the underground economy, the number of people employed informally is expected to remain static, accounting for around 58 per cent of the global workforce in 2024.
The World Health Organisation (WHO) declared COVID-19 a public health emergency in May 2023, but the pandemic's aftershocks were still being felt, according to an ILO report.
Residual symptoms and health problems for the 20% or so who suffered with 'long COVID' continue for many and have hampered productivity."
Many people who re-entered the employment market after the pandemic did not work the same number of hours, and the number of sick days taken increased dramatically.
Women's involvement in the labour force had recovered swiftly, but a significant gender gap remained, particularly in emerging and developing countries. Unemployment rates among young people remained high.
The survey also discovered that despite technical advancements and increasing expenditure, productivity growth had continued to slow.
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