Economic slowdown: ILO warns of increase in global unemployment in 2024

By:Mohamed Ben Abderrazek 

In its latest report on global employment trends for 2024, the International Labor Organization (ILO) is raising the alarm by predicting an increase in the global unemployment rate to 5.2%.

This increase, attributed to the economic slowdown, raises concerns about the effects on employment, productivity and social inequalities.

ILO concerns

After the year 2023 characterised by a historically low unemployment rate of 5.1%, the ILO foreshadows a reverse of the trend in 2024. The report indicates that about two million additional employees should find themselves looking for work, therefore raising the global unemployment rate to 5.2%, while staying below the level recorded in 2022 (5.3%).

The ILO stresses several disturbing factors in this economic context. First, is productivity stagnation, which could hinder economic growth and job creation. Then, the worsening of social inequalities is aggravated by a fall in real incomes in most G20 countries. Persistent inflation is consuming away at household disposable income, contributing to a more precarious economic climate.

Structural imbalances

According to the International Labour Organization (ILO), the observed inequalities in global wages are not merely a result of the post-pandemic recovery but rather seem to have a structural nature. The report highlights a decrease in real wages across the majority of G20 countries, where wage increases have failed to maintain pace with inflation. Notably, only China, Russia, and Mexico recorded positive real wage growth in 2023, indicating a substantial disparity among global economies.

Gilbert Houngbo, Director-General of the ILO, stresses that the labour problems identified represent a hazard to both individual livelihoods and businesses. It calls for effective and quick action to mitigate these challenges that could undermine global economic stability.

Growing inequality

Falling living standards, low productivity and persistent inflation create, according to the ILO, conditions conducive to more significant inequality. Houngbo insists that without greater social justice, a sustainable economic recovery stays elusive.

The report’s findings underscore the necessity for concerted international action to boost economic growth, create jobs and promote more equitable social justice to stop the deleterious effects of the economic downturn on workers and businesses globally. worldwide.