2024 Outlook: Rising Global Unemployment
The International Labor Organization (ILO) has released its “World Employment and Social Outlook: Trends 2024” report, which reveals that labor markets have shown resilience despite the challenging economic conditions in 2023.
The report indicates a decrease in the global unemployment rate in 2023, with figures showing a decline from 5.3 percent in 2022 to 5.1 percent in 2023. Additionally, the number of unemployed individuals actively seeking employment has fallen below pre-pandemic levels, demonstrating positive progress in the labor market.
However, the report also highlights some concerning trends for 2024. It is projected that the global unemployment rate will increase to 5.2 percent, with an estimated additional 2 million people entering the job market. This expected rise in the unemployment rate suggests potential challenges ahead for the global workforce.
Furthermore, the report predicts that working poverty will persist, with an increase in the number of workers living in extreme poverty, earning less than $2.5 a day. Additionally, the number of middle-poor individuals, earning $3.65 a day, is expected to rise by 8.4 million. The report also forecasts that unregistered work rates will remain stable, constituting approximately 58 percent of the global workforce in 2024.
While the report highlights the resilience of labor markets in 2023, it also underscores the need for continued efforts to address the challenges presented by the projected increase in global unemployment rates and working poverty in 2024. It is clear that policymakers and organizations will need to focus on strategies to ensure inclusive and sustainable economic recovery in the coming year.
