The International Labour Organization’s (ILO) World Employment and Social Outlook Trends 2024 report reveals that just over five percent of the world’s workforce is currently unemployed. While this is an improvement from pre-pandemic levels, the ILO predicts that an additional two million people will be seeking employment in the next year.
This aligns with a recent World Bank report, which anticipates the slowest economic growth in 30 years. The ILO also notes that the majority of wealthy nations have experienced a decline in living standards due to inflation, which is now decreasing in many major economies. However, the UN agency cautions that this erosion of living standards is not likely to be quickly reversed.
The ILO highlights significant differences in unemployment rates between higher and lower income countries. In 2023, the jobless rate in wealthier nations was 8.2 percent, compared to 20.5 percent in poorer countries. Similarly, the unemployment rate was 4.5 percent in wealthier countries, compared to 5.7 percent in low-income countries.
ILO Director-General Gilbert Houngbo warns that falling living standards, weak productivity, and persistent inflation contribute to greater inequality and hinder efforts towards social justice. He emphasizes the need for swift and effective action to address workforce challenges in order to achieve sustainable recovery.
Despite a decline in 2020, the number of workers living in extreme poverty (earning less than US$2.15 per person per day) increased by approximately one million in 2023. Income inequality has also widened, which could negatively impact economic recovery.
Despite efforts to address the informal economy, the ILO expects the percentage of workers employed informally to remain around 58 percent of the global workforce in 2024.
The ILO report also reveals that the aftershocks of the COVID-19 pandemic are still being felt. Some individuals continue to experience residual symptoms and health problems, impacting productivity. Women’s participation in the workforce has rebounded quickly, but a gender gap remains, particularly in emerging and developing nations. Youth unemployment rates also continue to be a challenge.
The report also notes that despite technological advancements and increased investment, productivity growth has slowed down.