2024-01-10T16:26:25+00:00
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/ The International Labor Organization warned, on Wednesday, that the global unemployment rate will rise slightly in 2024, expressing its concern about stagnant productivity, worsening inequality, and inflation that leads to the erosion of disposable income.
The global unemployment rate decreased from 5.3 percent in 2022 to 5.1 in 2023, and it is expected that two million additional workers will search for a job in 2024, which will contribute again to the rate rising to 5.2 percent, according to the International Labor Organization in its report on global employment trends and social prospects for 2024. .
The United Nations agency indicated that the economic recovery after the Covid-19 pandemic has slowed, against the backdrop of geopolitical tensions and ongoing inflation, which led to central banks taking proactive measures.
However, global growth in 2023 was slightly higher than expected and labor markets showed surprising resilience, according to the International Labor Organization.
But the organization reported that real wages fell in most G20 countries because wage increases did not keep pace with inflation.
She added that disposable income has declined in the majority of G20 countries, and in general “the erosion of living standards caused by inflation is unlikely to be quickly offset.”
The report assesses recent trends in the labor market, including unemployment, job creation, labor force participation, and working hours, and then links them to their social outcomes.
This report indicates that some data, especially on growth and unemployment, are “encouraging,” as announced by the Director-General of the International Labor Organization, Gilbert Houngbo.
He added, “A deeper analysis reveals that the imbalance in the labor market is widening.”
He explained, “It appears that this imbalance is not only related to recovery from the pandemic, but rather is structural.”
The report continued that only China, Russia and Mexico “benefited from positive real wage growth in 2023.”
Real wages declined in other G20 countries. Brazil (6.9 percent), Italy (5 percent), and Indonesia (3.5 percent) recorded the largest decline.
“The labor problems reported pose a threat to the livelihoods of individuals and companies, and it is essential that we address them effectively and quickly,” the ILO Director-General said.
The Director-General of the organization announced, “The decline in living standards and low productivity, along with persistent inflation, creates conditions for greater inequality and undermines efforts to achieve social justice,” adding that “in the absence of greater social justice, we will never be able to achieve a lasting recovery.”