UN Says Global Unemployment Rate Will Worsen In 2024

By Akinwale Kasali

The United Nation has projected that the Global Unemployment will increase drastically in 2024. It raised concerns about the stagnancy in productivity, worsening inequalities and inflation biting into disposable income.

The UN said that the World is yet to recover from the deadly Covid-19 Pandemic that crippled the economic situation of countries around the world.

It also raised concern at the ongoing geopolitical tensions and persistent inflation triggering aggressive moves by Central Banks in most part of the country of the world.

The International Labour Organization, ILO, had earlier stated that global growth in 2023 was modestly higher than anticipated, and labour markets showed surprising resilience, however, real wages declined in most of the G20 countries as wage increases failed to keep pace with inflation, said the ILO.

The 2022 global unemployment rate stood at 5.3 percent and made a modest improvement last year to 5.1 percent.

However, in 2024 an extra two million workers are expected to be looking for jobs, raising the global unemployment rate to 5.2 percent.

Disposable incomes have declined in the majority of G20 nations and, generally, the erosion of living standards resulting from inflation is “unlikely to be compensated quickly”, the ILO said.

Widening inequalities and stagnant productivity are causes for concern, the ILO said in its World Employment and Social Outlook Trends report for 2024.

The study assesses the latest labour market trends, including unemployment, job creation, labour force participation and hours worked — then links those to their social outcomes.

The report found that some of the data, notably on growth and unemployment, are “encouraging”, ILO chief Gilbert Houngbo said.

But a “deeper analysis reveals that labour market imbalances are growing and that, in the context of multiple and interacting global crises, this is eroding progress towards greater social justice”, Houngbo added.