THE International Labour Organisation (ILO) predicts that two million workers will lose their jobs this year, as the global unemployment rate rises from 5.1 percent in 2023 to 5.2 percent.
The ILO’s newest research, “World Employment and Social Outlook: Trends 2024,” stated that while joblessness and the jobs gap had declined below pre-pandemic levels, worldwide unemployment will rise in 2024.
It noted that rising inequality and sluggish productivity were cause for concern.
The global unemployment rate has decreased for three years in a row, falling from 6.9 percent in 2019 to 5.1 percent in 2023.
The report also revealed that despite deteriorating economic conditions, the labor markets had demonstrated surprising resilience; however, recovery from the pandemic remained uneven, with new vulnerabilities and numerous crises weakening possibilities for greater social fairness.
“The 2023 global unemployment rate stood at 5.1 per cent, a modest improvement from 2022 when it stood at 5.3 per cent. The global jobs gap and labour market participation rates also improved in 2023,” the report said.
According to the research, working poverty is predicted to last despite rapidly reducing after 2020, with the number of workers living in extreme poverty (earning less than US$2.15 per person per day in purchasing power parity terms) increasing by around 1 million in 2023.
According to the report, the number of workers living in moderate poverty (earning less than US$3.65 per day per person in PPP values) will increase by 8.4 million by 2023.
It also predicted that the labor market outlook and global unemployment would both deteriorate.
“Disposable incomes have declined in the majority of G20 countries, and, generally, the erosion of living standards resulting from inflation is, unlikely to be compensated quickly,” it added.
It observed that significant disparities remained between high- and low-income countries.
In 2023, the jobs gap was 8.2% in high-income nations, whereas it was 20.5% in low-income countries.
It further observed that significant disparities remained between high- and low-income countries.
In 2023, the jobs gap was 8.2% in high-income nations, whereas it was 20.5% in low-income countries.
“Similarly, while the 2023 unemployment rate persisted at 4.5 per cent in high-income countries, it was 5.7 per cent in low-income countries.
“Rates of informal work are expected to remain static, accounting for around 58 per cent of the global workforce in 2024,” it added.
The Director-General of the ILO, Gilbert Houngbo, said, “This report looks behind the headline labour market figures and what it reveals must give great cause for concern. It is starting to look as if these imbalances are not simply part of pandemic recovery but structural.”
“The workforce challenges it detects pose a threat to both individual livelihoods and businesses and it is essential that we tackle them effectively and fast.
“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.”
