The worldwide unemployment rate will rise slightly in 2024, according to the United Nations, which expressed concern about sluggish productivity, growing disparities, and inflation eating into disposable income.
According to the UN’s labor agency, the economic recovery from the COVID-19 pandemic has faltered, with persisting geopolitical tensions and persistent inflation prompting forceful central bank initiatives.
Nonetheless, worldwide growth in 2023 was slightly greater than expected, and labor markets demonstrated remarkable resilience, according to the International Labour Organization.
According to the ILO, real earnings fell in the majority of G20 countries as wage increases failed to keep pace with inflation.
The global unemployment rate in 2022 was 5.3 percent in 2018, with a slight improvement to 5.1 percent last year.
However, an additional two million individuals are predicted to hunt for work in 2024, boosting the worldwide unemployment rate to 5.2 percent.
The majority of G20 countries’ disposable incomes have fallen, and the ILO believes that the degradation of living standards caused by inflation is “unlikely to be compensated quickly.”
2024 ILO report flags concerns
Widening inequality and sluggish productivity are causes for concern, according to the International Labour Organization’s World Employment and Social Outlook Trends report for 2024.
The study examines the most recent labor market developments, such as unemployment, job creation, labor force participation, and hours worked, and then connects these to their social consequences.
According to ILO chief Gilbert Houngbo, the assessment indicated that parts of the data, particularly on growth and unemployment, are “encouraging.”
On the other hand, “deeper analysis reveals that labor market imbalances are growing and that, in the context of multiple and interacting global crises, this is eroding progress towards greater social justice”, Houngbo elaborated.
According to the research, only China, Russia, and Mexico will have “positive real wage growth in 2023.”
Other G20 countries’ real wages declined, with Brazil (6.9%), Italy (5%), and Indonesia (3.5%) having the steepest drops.
“Falling living standards and weak productivity combined with persistent inflation create the conditions for greater inequality and undermine efforts to achieve social justice,” said Houngbo.
“And without greater social justice we will never have a sustainable recovery.”