Global unemployment rate is set to increase in 2024 while growing social inequalities remain a concern, said the International Labour Organisation’s (ILO) World Employment and Social Outlook: Trends 2024 report released in Vienna on Wednesday. Joblessness and the jobs gap have both fallen below pre-pandemic levels but global unemployment will rise in 2024, the report noted and maintained that growing inequalities and stagnant productivity are causes for concern. In India, real wages are “positive” compared to other G20 countries, according to the report.
The report said the macroeconomic environment deteriorated significantly over 2023. “Ongoing geopolitical tensions as well as persistent and broadening inflation triggered frequent and aggressive moves by central banks,” it said. Monetary authorities in advanced and emerging economies implemented the fastest increase in interest rates since the 1980s, with significant global repercussions, it said. China, Türkiye and Brazil slowed down considerably, causing adverse impact on global industrial activity, investment and trade.
On a positive note, the report said, despite the economic slowdown, global growth in 2023 was modestly higher than anticipated, and labour markets showed surprising resilience. “On the back of strong jobs growth, both the unemployment rate and the jobs gap have declined below pre-pandemic values. The global unemployment rate in 2023 was 5.1%, a modest improvement on 2022. The global jobs gap also saw improvements in 2023, but, at close to 435 million, remained elevated,” the report said. The labour market participation rates had largely also recovered from their pandemic lows. “Although the imbalances eased somewhat in 2023, concerns are rising that these labour market imbalances are structural, rather than cyclical, in nature,” it warned.
