The International Labour Organization (ILO), a United Nations agency, has projected a modest rise in the global unemployment rate to 5.2% in 2024, citing an increase in joblessness across advanced economies. According to the ILO's 2024 World Employment and Social Outlook report released on Wednesday, January 10, the anticipated rise would result in the global unemployment rate inching up from 5.1% recorded in 2023.
Richard Samans, the Director of ILO's Research Department, explained, "We are projecting a modest fall in performance on labour markets, in part because growth is decelerating around the world."
The report forecasts that the number of unemployed individuals globally will surge by two million, contributing to the uptick in the unemployment rate. Despite a brief growth spurt as countries recovered from the pandemic, the ILO highlighted that aggregate labour productivity growth had swiftly returned to the sluggish pace observed over the previous decade.
"During periods of slow productivity growth, real disposable income and real wages are often vulnerable to sudden price shocks," the ILO report cautioned.
The analysis in the report indicates that upper-middle-income countries are not expected to experience substantial employment gains over the next two years. However, low-income and lower-middle-income countries are anticipated to maintain robust job growth.
"The situation is particularly concerning in high-income countries, where employment growth is expected to turn negative in 2024, and only modest improvements are anticipated in 2025," the ILO warned.
With inputs from Reuters
