Context:

Recently, The International Labour Organisation (ILO) released the World Employment and Social Outlook: Trends 2024 Report.

ILO World Employment and Social Outlook Report: Key Highlights of Reports 

• The  ILO’s flagship report (Employment and Social Outlook)details the impact of the economic slowdown on the global labour market.
• Objective: It covers the extent and consequences of the labor market disruption caused by overlapping economic and geopolitical crises.
• Focus: It pays particular attention to the impact of the different crises on productivity, job quality, and job opportunities and how these trends risk undermining social justice around the world.

Employment and Social Outlook: Key Findings of Reports

• Deteriorating Macroeconomic Environment: The central banks across the advanced and emerging economies are raising their interest rates, in response to global Inflation due to ongoing geopolitical tensions (Russia-Ukrain Crisis, Israel-Hamas Conflict), resulting in capital outflows from developing economies and causing adverse impact on global industrial activity, investment, and trade.
  • China, Türkiye, and Brazil slowed down considerably.
• Global Unemployment Rate: Joblessness and the jobs gap have both fallen below pre-pandemic levels (The global unemployment rate in 2023 was 5.1%) but unemployment rates will rise globally in 2024 with growing social inequalities as a result of the fallout.
• Wages Growth:  Real wage declined in the majority of G20 countries as wage increase was not proportionate to inflation growth. Only China, the Russian Federation, and Mexico enjoyed positive real wage growth in 2023.
• Extreme poverty: The number of workers earning less than US$2.15 per day in purchasing power parity (PPP) terms grew by about one million globally.
• Inequality rising: Weak labour productivity and falling living standards coupled  with persistent inflation create the conditions for greater inequality and undermine efforts to achieve social justice.
• Silver Lining: 
  • 2023: Global growth in 2023 was modestly higher than anticipated, and labour markets showed resilience despite the economic slowdown,
  • Strong job growth: The global jobs gap although improved but at 435 million, still remained elevated. But  both the unemployment rate and the jobs gap have declined below pre-pandemic values in 2023
  • The labour market participation rates had largely also recovered from their pandemic lows.

Also Refer: ILO Report On Occupational Safety And Health (OSH)

News Source: The Hindu