The global unemployment rate is projected to rise in 2024, according to a report by the International Labour Organization (ILO). The ILO expects an additional two million people to be seeking jobs, raising the global unemployment rate slightly from 5.1% in 2023 to 5.2%. This trend is seen amidst growing concerns over increasing inequality and stagnant productivity across the globe.
The report also highlighted disparities between high-income and low-income countries, with wealthier nations having lower unemployment rates compared to their poorer counterparts. In addition, the report pointed out the persistent challenge of working poverty, with the number of workers living in extreme poverty—earning less than $2.15 per person per day—increasing by about a million in 2023. Despite efforts to address these issues, income inequality continues to widen, and the informal employment sector is expected to remain substantial, accounting for around 58% of the global workforce in 2024.
In contrast, the Organization for Economic Co-operation and Development (OECD) reported that its unemployment rate remained stable at 4.8% in December 2023, continuing a trend of staying below 5.0% throughout the year. This reflects a somewhat different situation in OECD member countries compared to the global perspective, highlighting the variance in economic conditions and labor markets across different parts of the world.
The divergence in unemployment rates between the global perspective and OECD countries underscores the varied impact of economic conditions around the world. While OECD countries have managed to maintain a relatively stable and lower unemployment rate, the global picture reflects broader challenges, particularly in lower-income countries where job scarcity is more pronounced and economic conditions more volatile.
The ILO’s report suggests that global recovery from the pandemic remains uneven, with certain regions and economies facing significant headwinds. Factors such as inflation, which has eroded living standards in many countries, contribute to this complex situation. Inflation’s impact is multifaceted, affecting not just the cost of living but also economic confidence and consumer spending, which in turn influence employment opportunities.
Moreover, the persistence of a large informal sector globally indicates that a significant portion of the workforce remains vulnerable to economic shocks without adequate social protections. The informal sector often encompasses jobs that are less secure, with lower wages and no benefits, which exacerbates the issue of working poverty and income inequality.
The ILO emphasizes the need for concerted efforts to address these challenges, advocating for policies that promote social justice, enhance productivity, and ensure a sustainable economic recovery. This includes tackling the underlying issues of income inequality and working poverty, as well as creating more and better jobs, especially in regions and countries that are lagging behind in economic recovery.
As the global economy navigates through these uncertain times, the focus remains on fostering a more inclusive and resilient labor market. The disparity in unemployment rates across different countries and regions highlights the importance of tailored economic and social policies to address the specific needs and challenges of each context.
In conclusion, while some countries and regions show signs of stability or improvement in employment rates, the global unemployment outlook for 2024 reminds us of the ongoing challenges in achieving equitable economic recovery and growth. Addressing these challenges requires a multifaceted approach, including international cooperation and policy measures that target both the immediate and long-term needs of the global workforce.
