The United Nations has stated that the global unemployment rate will increase slightly in 2024.
The United Nations organization International Labour Organization made this announcement on Wednesday, expressing worry over inflation eating away at disposable income, poor productivity, and rising inequality.
It highlighted that the economic recovery from the Covid-19 outbreak had slowed down, with persisting geopolitical tensions and persistent inflation prompting central banks to act aggressively.
According to the International Labour Organization, global growth in 2023 will be slightly greater than predicted, and labour markets will show unexpected resilience.
It did state, however, that real incomes decreased in most G20 nations as wage growth lagged behind inflation.
The rate of unemployment worldwide in 2022 was 5.3% in 2018, indicating a little improvement from 5.1% the previous year.
In the meantime, it is anticipated that two million more people will be looking for work in 2024, raising the global unemployment rate to 5.2%.
Since most G20 nations now have lower discretionary incomes, the International Labour Organization predicts that the inflation-related decline in living standards will take time to reverse.
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Widening inequality and sluggish productivity are causes for concern, according to the International Labour Organization’s World Employment and Social Outlook Trends report for 2024.
The study examines the most recent labour market developments, such as unemployment, job creation, labour force participation, and hours worked, and then connects these to their societal consequences.
According to the International Labour Organization chief Gilbert Houngbo, the assessment indicated that parts of the data, particularly on growth and unemployment, are “encouraging.”
Houngbo went on to say that a “deeper analysis reveals that labour market imbalances are growing and that, in the context of multiple and interacting global crises, this is eroding progress towards greater social justice.”
According to the research, only China, Russia, and Mexico will have “positive real wage growth in 2023.”
Other G20 countries’ real wages declined, with Brazil losing 6.9 per cent, Italy losing 5%, and Indonesia losing 3.5 per cent.
“Falling living standards and weak productivity combined with persistent inflation create the conditions for greater inequality and undermine efforts to achieve social justice,” Houngbo said in a statement.
He added that “without greater social justice, we will never have a sustainable recovery.”
