The Lower Eastern Times Opening The Third Eye
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The United Nations has warned that the global unemployment rate is expected to see a slight increase in 2024, citing concerns over stagnant productivity, rising inequalities, and the impact of inflation on disposable income.
The International Labour Organization (ILO) expressed worry about the slowing economic recovery from the Covid-19 pandemic, influenced by ongoing geopolitical tensions and inflationary pressures prompting assertive actions by central banks.
Despite global growth in 2023 exceeding expectations, the ILO noted surprising resilience in labor markets. However, real wages declined in most G20 countries as they failed to keep up with inflation. The global unemployment rate, which improved slightly from 5.3 percent in 2022 to 5.1 percent in the previous year, is expected to rise to 5.2 percent in 2024, with an additional two million workers seeking employment.
The majority of G20 nations experienced a decline in disposable incomes, and the ILO emphasized that the erosion of living standards due to inflation is unlikely to be swiftly compensated. The World Employment and Social Outlook Trends report for 2024 highlighted widening inequalities and stagnant productivity as significant concerns.
While some aspects of the data, particularly on growth and unemployment, are encouraging, the ILO stressed that labor market imbalances are increasing. Gilbert Houngbo, the head of the ILO, noted that deeper analysis reveals the erosion of progress toward greater social justice amid multiple global crises.
The report highlighted that only China, Russia, and Mexico witnessed positive real wage growth in 2023, while real wages fell in other G20 countries, with Brazil, Italy, and Indonesia experiencing the sharpest declines. Houngbo emphasized that falling living standards, weak productivity, and persistent inflation contribute to greater inequality, undermining efforts to achieve social justice and hindering a sustainable recovery.
