Recently, the International Labour Organisation (ILO) published World Employment and Social Outlook: September 2024.

Crucial Insights on the ILO Study

According to the International Labour Organisation’s (ILO), tech innovations have boosted labour productivity, output, but can also reduce labour income share.

• Impact on Labour Income Share: Technological innovations have produced persistent increases in labour productivity and output, but they can also reduce the labour income share. 
  • This is consistent with automation-based technological innovations driving the aggregate effects.
• Impact due to COVID: The pandemic was a key driver, with nearly 40% of the reduction in the labour income share occurring during the pandemic years of 2020 to 2022. 
  • The crisis exacerbated existing inequalities, particularly as capital income continues to concentrate among the wealthiest, undermining progress towards SDG 10, which aims to reduce inequality within and among countries.

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• Slow progress on key Sustainable Development Goals (SDGs): The report also indicated slow progress on key SDGs as their 2030 deadline approaches. 
• Arising Concern: The study revealed that the global labour income share, which represents the portion of total income earned by workers, fell by 0.6% points from 2019 to 2022 and has since remained flat, compounding a long-running downward trend. 
  • If the share had remained at the same level as in 2004, labour income would be larger by $2.4 trillion in 2024 alone. 
• Actions Suggested: 
  • A Stronger Policy Response: Across a wide range of relevant domains that could positively push the labour income share.
    • Countries must focus on policies that:
      • Promote an equitable distribution of economic benefits, including freedom of association, collective bargaining and effective labour administration
      • To achieve inclusive growth
      • Build a path to sustainable development for all
  • Reduce Inequality: Mitigate the potential that adversely impacts inequality.
  • Wide Distribution: The benefits of technological progress should be widely distributed.

About International Labour Organisation (ILO)

ILO was established in 1919 as part of the Treaty of Versailles.

• Goal: To promote social justice and internationally recognised human and labour rights, based on its basic goal that labour peace is critical to prosperity.
• Headquarters: Geneva, Switzerland
• Member States: 187 state members
• Status of India in ILO: India was a founding member of the International Labour Organisation and has served as a permanent member of its Governing Body since 1922.
• Flagship Reports: 
  • Global Wage Report
  • World of Work Report
  • World Employment and Social Outlook
• International Labour Organization’s Conventions 138 and 182 are related to Child Labour.

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