The report "Global Employment and Social Outlook: Trends 2024"

Although several labor markets have shown resilience, the International Labour Organization (ILO) predicts that global unemployment will rise through 2024 as a result of persistent inflation, stagnating wages, and slowing economic development.

Worsening Macroeconomic Conditions

This week, the ILO released its annual World Employment and Social Outlook report, highlighting the severe macroeconomic decline caused by a series of worldwide crises over the previous 12 months.

Amidst persistent geopolitical tensions and aggressive interest rate hikes by central banks to control inflation, several major economies had a significant slowdown in 2023. This resulted in a reduction in industrial production, trade, and investment flows.

Unequal Recoveries in the Labor Market

However, as the effects of the pandemic subsided, recent increases in employment and a decline in unemployment in several nations unexpectedly exceeded predictions.

The rate of unemployment worldwide decreased to 5.1% from pre-COVID levels, while the labor force participation rate rebounded to levels similar to those in early 2020. But issues with the caliber of the job that is offered still exist.

Imminent Dangers

Even still, the ILO cautioned that weakening economies will probably cause global unemployment to rise again until 2024, even as many countries continue to suffer from structural flaws including inadequate social protection and skills gaps.

As real wage growth lags behind consumer price increases in the majority of G20 economies, with the exception of China and India, more people globally are also living in working poverty, which is defined as making less than $2 per day.

The Wage Growth in India Is Better

Significantly, the research revealed that real wages in India increased "positively" in 2022 compared to 2021, outpacing the growth rate in all other G20 nations with the exception to Mexico.

Strong productivity growth in the nation probably contributed to higher salary growth when compared to peers. However, just like other countries, India still has difficulties guaranteeing labor rights and widespread social equality.

Long-Term Priorities for Policy

Governments must prioritize creating high-quality jobs and strengthening social safety nets in order to prevent further inequality when short-term crisis effects subside but long-term problems continue.

Investing in workforce training, job matching programs, and unemployment schemes can alleviate structural displacement caused by disruptions generated by technology and climate change.