ILO warns of global unemployment escalation in 2024

Shafaq News / The International Labour Organization (ILO) warned on Wednesday of a slight increase in the global unemployment rate in 2024, expressing concern about declining productivity, worsening inequality, and inflation leading to an erosion of available income.

Global unemployment rates dropped from 5.3% in 2022 to 5.1% in 2023. However, it is anticipated that an additional one million workers will be seeking jobs in 2024, contributing to a rise in the rate to 5.2%, according to the ILO's report on global employment trends and social outlooks for 2024.

The United Nations agency pointed out that economic recovery post-COVID-19 had slowed due to geopolitical tensions and persistent inflation, leading central banks to take preemptive actions.

Despite this, global growth in 2023 was slightly higher than expected, and labor markets displayed unexpected resilience, according to the ILO.

However, the organization noted that real wages decreased in most G20 countries as wage increases failed to keep pace with inflation.

It added that available income declined in most G20 nations and generally stated, "The erosion of living standards caused by inflation is unlikely to be quickly compensated for."

The report assesses recent labor market trends, including unemployment, job creation, labor force participation, and working hours, correlating them with their social outcomes.

This report indicates that some data, particularly concerning growth and unemployment, is "encouraging," as stated by ILO Director-General Gilbert F. Houngbo.

He added, "A deeper analysis reveals an expanding imbalance in the labor market."

He clarified, "This imbalance appears to be not only related to the recovery from the pandemic but is also structural."

The report mentioned that only China, Russia, and Mexico experienced positive growth in real wages in 2023.

Real wages declined in the other G20 countries, with Brazil (6.9%), Italy (5%), and Indonesia (3.5%) experiencing the most significant decreases.

The ILO Director-General stated, "Labor force issues pose a threat to the livelihoods of individuals and businesses, and it is essential to address them effectively and promptly."

The Director-General emphasized, "Declining living standards, decreasing productivity, coupled with ongoing inflation, create conditions for further inequality, undermining efforts towards achieving social justice."

He added, "Without greater social justice, we will never achieve lasting recovery."