The International Labor Organization (ILO) anticipates a slight increase in the global unemployment rate in 2024, expressing concerns about stagnant productivity, growing inequality, and inflation impacting disposable income.
After decreasing from 5.3% in 2022 to 5.1% in 2023, the global unemployment rate is projected to rise to 5.2% in 2024, with an estimated two million additional workers seeking employment, according to the ILO’s report on global employment trends and social prospects for 2024, reports Al-Anba daily.
The United Nations agency highlighted that the economic recovery post-Covid-19 has slowed amid geopolitical tensions and persistent inflation, prompting central banks to implement proactive measures.
While global growth in 2023 exceeded expectations and labor markets displayed resilience, real wages fell in most G20 countries, failing to keep pace with inflation. Disposable income also decreased in the majority of G20 nations, and the report suggests that the impact of inflation on living standards is unlikely to be swiftly compensated.
The report assesses various labor market indicators, including unemployment, job creation, labor force participation, and working hours, linking these trends to social outcomes. Although some data, particularly related to growth and unemployment, are deemed encouraging, the Director-General of the ILO, Gilbert Houngbo, cautioned that the labor market imbalance is widening.
Real wages experienced declines in several G20 countries, with Brazil (6.9%), Italy (5%), and Indonesia (3.5%) facing the most significant decreases. The Director-General emphasized the importance of addressing labor market challenges promptly, stating that these issues threaten the livelihoods of individuals and businesses.
Highlighting the implications of declining living standards, low productivity, and persistent inflation, the Director-General stressed the need for effective and swift measures to tackle these challenges, stating that without greater social justice, achieving a lasting recovery would be elusive.
