The report "Global Employment and Social Outlook: Trends 2024"
The report "Global Employment and Social Outlook: Trends
2024"
Although several labor markets have shown resilience, the
International Labour Organization (ILO) predicts that global
unemployment will rise through 2024 as a result of persistent inflation,
stagnating wages, and slowing economic development.
Worsening Macroeconomic Conditions
This week, the ILO released its annual World Employment and
Social Outlook report, highlighting the severe macroeconomic decline caused by
a series of worldwide crises over the previous 12 months.
Amidst persistent geopolitical tensions and aggressive
interest rate hikes by central banks to control inflation, several major
economies had a significant slowdown in 2023. This resulted in a reduction in
industrial production, trade, and investment flows.
Unequal Recoveries in the Labor Market
However, as the effects of the pandemic subsided, recent
increases in employment and a decline in unemployment in several nations
unexpectedly exceeded predictions.
The rate of unemployment worldwide decreased to
5.1% from pre-COVID levels, while the labor force participation rate rebounded
to levels similar to those in early 2020. But issues with the caliber of the
job that is offered still exist.
Imminent Dangers
Even still, the ILO cautioned that weakening
economies will probably cause global unemployment to rise again until 2024,
even as many countries continue to suffer from structural flaws including
inadequate social protection and skills gaps.
As real wage growth lags behind consumer price
increases in the majority of G20 economies, with the exception of China and
India, more people globally are also living in working poverty, which is
defined as making less than $2 per day.
The Wage Growth in India Is Better
Significantly, the research revealed that real
wages in India increased "positively" in 2022 compared to 2021,
outpacing the growth rate in all other G20 nations with the exception to
Mexico.
Strong productivity growth in the nation probably contributed to higher
salary growth when compared to peers. However, just like other countries, India
still has difficulties guaranteeing labor rights and widespread social
equality.
Long-Term Priorities for Policy
Governments must prioritize creating high-quality jobs and strengthening
social safety nets in order to prevent further inequality when short-term
crisis effects subside but long-term problems continue.
Investing in workforce training, job matching programs, and unemployment
schemes can alleviate structural displacement caused by disruptions generated
by technology and climate change.