“World Employment and Social Outlook: Trends 2024” Report

The International Labour Organization (ILO) projects worldwide joblessness will increase through 2024 as declining economic growth combines with persistent inflation and stagnant wages to spur inequality – though some labor markets have proved resilient.

Deteriorating Macroeconomic Environment

Presenting its annual World Employment and Social Outlook report this week, the ILO highlighted the sharp macroeconomic deterioration over the past year from cascading global crises.

Multiple major economies slowed considerably in 2023 amid lingering geopolitical tensions and aggressive central bank interest rates hikes aimed at taming inflation – dampening industrial production, trade, and investment flows.

Uneven Labor Market Recovery

Yet despite the global growth downshifts, recent jobs growth and falling unemployment surprisingly outperformed forecasts in certain countries as pandemic impacts faded.

The global jobless rate dropped below pre-COVID levels to 5.1% with labor force participation also bouncing back close to early 2020 levels. But concerns remain over the quality of work available.

Looming Risks

However, the ILO warned slowing economies will likely swing global unemployment back upward through 2024 even as structural weaknesses like skills gaps and inadequate social protection linger in many nations.

More people worldwide are also falling into working poverty – subsisting on under $2 daily – as real wage growth trails behind consumer prices across most G20 economies except China and India.

Indian Wage Growth Outperforms

Notably, the report found real wages in India showing “positive” improvement in 2022 versus 2021 – exceeding the rate across all other G20 countries save Mexico.

Robust productivity expansion in the country likely helped boost wage growth compared to peers. But like elsewhere, India still faces challenges ensuring broad-based social equality and labour rights.

Long-Term Policy Priorities

As transitory crisis impacts stabilize but entrenched issues persist, governments must prioritize quality job creation and fortifying social safety nets to prevent greater inequality.

Nations should also invest in workforce training, job matching programs, and unemployment schemes to ease structural displacement from technological and climate change-driven disruption.

Proactive reforms strengthening worker protections can help temper the coming rise in joblessness while laying foundations for an equitable, inclusive future of work as the global economy enters a complicated new chapter.

Month: Current Affairs - January, 2024

Category: Reports & Indexes Current Affairs