The global unemployment rate is expected to increase slightly in 2024, according to the International Labor Organization, which is concerned about the slowdown in productivity, worsening inequality, and inflation that erodes available income.
The global unemployment rate has decreased from 5.3% in 2022 to 5.1% in 2023, and it is expected that an additional two million workers will be looking for a job in 2024, which will again contribute to an increase in the rate to 5.2%, according to the International Labour Organization in its report on global employment trends and social outlook for 2024.
The UN agency indicated that “economic recovery after the COVID-19 pandemic has slowed down, due to geopolitical tensions and ongoing inflation, prompting central banks to take preemptive measures”.
However, global growth in 2023 was slightly higher than expected and the labor markets showed surprising flexibility, according to the International Labour Organization.
However, the organization stated that “real wages have decreased in most G20 countries because wage increases have not kept up with inflation.”
She added that “available income has declined in the majority of G20 countries, and it is unlikely that the erosion of living standards caused by inflation will be quickly compensated for.”
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The report evaluates recent trends in the job market, including unemployment, job creation, labor force participation, and working hours, and then links them to their social outcomes.
This report suggests that some data, especially those related to growth and unemployment, are “encouraging,” according to the Director-General of the International Labour Organization, Guy Ryder.
He added that a deeper analysis reveals that the imbalance gap in the labor market is widening.
And he continued: “It seems that this imbalance is not only related to recovering from the pandemic but is also intentional.”
The report continued that only China, Russia, and Mexico benefited from a positive growth in real wages in 2023.
Real wages declined in other G20 countries as well. Brazil (-6.9%), Italy (-5%), and Indonesia (-3.5%) experienced the largest decline.
The Director-General of the International Labour Organization stated that the labor issues that have arisen pose a threat to the livelihoods of individuals and companies, and it is essential that we address them effectively and promptly.
The director general of the organization announced that the decline in living standards, decrease in productivity, and continuous inflation are creating conditions for further inequality and undermining efforts to achieve social justice. He added that without greater social justice, we will never be able to achieve permanent recovery.
