Unemployment, inequality, stagnant productivity: Triple threats engulfing global labour market

 

In a recent report, the International Labour Organization (ILO) noted that global unemployment is expected to rise in 2024. The UN labor agency pointed to growing inequality and stagnating productivity as economic concerns. 

Currently over 5% of the global workforce is unemployed, an improved situation from the COVID-19 pandemic but expected to worsen with an additional 2 million jobseekers in the next year.

Additionally, the ILO reported that inflation had eroded living standards for most wealthy countries, though inflation is now declining in several major economies worldwide. The agency highlighted significant differences between higher and lower income nations. 

In 2023, the job vacancy rate was 8.2% in richer countries versus 20.5% in poorer ones. Unemployment similarly struck 4.5% in wealthy nations and 5.7% in low-income countries.

ILO Director-General Gilbert Houngbo stated falling living standards and productivity alongside inflation have undermined social justice efforts. Income inequality also widened despite a post-2020 drop, with those in extreme poverty increasing by around 1 million people last year.