Why is it in the news?

• The International Labour Organisation (ILO) has released the World Employment and Social Outlook: Trends 2024 report.

Major Takeaways from the Report

• The ILO’s World Employment and Social Outlook: Trends 2024 report highlights a macroeconomic deterioration in 2023.
• According to the report, geopolitical tensions and widespread inflation triggered aggressive moves by central banks globally.
• The fastest increase in interest rates since the 1980s was implemented by monetary authorities in advanced and emerging economies.
• China, Türkiye, and Brazil experienced significant economic slowdowns, impacting global industrial activity, investment, and trade.

Labor Market Statistics (2023):

• Joblessness and the jobs gap fell below pre-pandemic levels.
• Despite the economic slowdown, global growth in 2023 exceeded expectations, and labour markets demonstrated surprising resilience.
• The global unemployment rate in 2023 was 1%, a modest improvement from 2022.
• Labor market participation rates largely recovered from pandemic lows.

Concerns and Challenges:

• Structural imbalances in the labour market are a rising concern, potentially being more than cyclical.
• Real wages declined in the majority of G20 countries, failing to keep pace with inflation.
• In 2023, the number of workers living in extreme poverty increased by about one million globally, with only a few countries experiencing positive real wage growth.

Suggestions from the Report

• Policymakers in fast-ageing countries should support the participation of groups with weak labour market attachment, including youth, women, and older workers.
• Investment and skills policies are crucial for raising productivity, facilitating technological progress, and enhancing potential growth.
• Motivating workers who left low-paying and difficult sectors may be achieved through improvements in working conditions.
• Ensuring internationally mobile workers are matched to suitable jobs could alleviate shortages.
• Recognizing that structural challenges won’t disappear in the short term, governments and social partners should engage in supplemental efforts to address these labour market issues.