Why is it in the news?
- The International Labour Organisation (ILO) has released the World Employment and Social Outlook: Trends 2024 report.
| About ILO
· The International Labour Organisation (ILO) is a United Nations Agency established in 1919. · It became the first specialized agency of the UN in 1946. · It has 187 Member states and operates as the only tripartite U.N. agency, bringing together governments, employers, and workers. · The ILO sets labour standards, develops policies, and promotes decent work for all women and men. · It produces major reports such as World Employment and Social Outlook (WESO), Global Wage Report, World Social Protection Report, World Employment and Social Outlook for Youth, and World of Work 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.
