UN Predicts Slight Rise in Global Unemployment Rate for 2024
The United Nations has projected a slight increase in the global unemployment rate for 2024, citing concerns over slow productivity, rising inequality, and the impact of inflation on disposable income. The International Labour Organization (ILO), a UN agency, made this announcement on Wednesday, highlighting the challenges posed by the ongoing economic recovery from the Covid-19 pandemic.
According to the ILO, while global growth in 2023 is expected to be slightly higher than previously predicted, there are lingering concerns about the pace of economic recovery. The report noted that despite unexpected resilience in labor markets, real earnings have declined in most G20 countries, failing to keep up with inflation.
In 2022, the global unemployment rate stood at 5.1 per cent, showing a slight improvement from 5.3 per cent in 2018. However, the ILO predicts that an additional two million workers will be seeking employment in 2024, leading to a rise in the global unemployment rate to 5.2 per cent.
The report highlighted that disposable incomes have fallen in the majority of G20 countries, with the ILO expressing skepticism about a quick recovery from the erosion of living standards caused by inflation. The study also raised concerns about widening inequality and sluggish productivity, which it sees as significant challenges.
Gilbert Houngbo, the head of the ILO, acknowledged some positive trends in the data, particularly regarding growth and unemployment. However, he cautioned that labor market imbalances are growing, posing a threat to progress towards greater social justice.
The research revealed that only China, Russia, and Mexico are expected to experience positive real wage growth in 2023. In contrast, other G20 countries are facing declines in real wages, with Brazil, Italy, and Indonesia experiencing significant drops.
Houngbo stressed that the combination of falling living standards, weak productivity, and persistent inflation creates conditions for greater inequality, undermining efforts to achieve social justice. He emphasized the need for greater social justice to ensure a sustainable recovery.
Daily Trust
