Global unemployment set to rise in 2024: ILO
GENEVA, SWITZERLAND — The International Labour Organization (ILO) projects global unemployment will rise from 5.1% to 5.2% (an additional 2 million jobless individuals) in 2024, despite recent improvements.
The ILO’s latest “World Employment and Social Outlook Trends: 2024” (WESO Trends) report flags emerging labor market fragility, citing declining disposable incomes across most G20 nations.
The data reveals stark disparities between higher and lower-income countries. Unemployment stood at 5.7% in low-income countries in 2023, compared to just 4.5% in wealthier states.
Similarly, the jobs gap rate was over double in poorer countries at 20.5%, versus 8.2% in advanced economies.
The report also warns of swelling working poverty, with over 1 million additional people falling into extreme poverty last year.
Extreme poverty pertains to earning less than US$2.15 per person per day in purchasing power parity terms.
“It is starting to look as if these imbalances are not simply part of pandemic recovery but structural,” said ILO Director-General Gilbert Houngbo.
Women’s participation in the labor market has rebounded, yet a gender gap remains, especially in developing countries. Youth unemployment and the Not in Employment, Education or Training (NEET) rates continue to be high, impacting long-term employment prospects.
The report also finds a slowdown in labor productivity growth, despite technological advancements and increased investment. Significant investment in less productive sectors like services and construction and barriers like skill shortages are partly to blame.
“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,” added Houngbo.
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