The International Labour Organization (ILO) revealed a persistent global unemployment rate of over 5%, according to the World Employment and Social Outlook Trends 2024 report. Despite an initial improvement post-pandemic, conditions are expected to worsen, with around 2 million more individuals likely to be job-seeking in the next year. The ILO’s findings align with the World Bank’s report, which predicts the slowest global economic growth in 30 years. The ILO also noted that inflation has eroded living standards in the world’s wealthiest nations.

Substantial disparities were identified between higher-income and lower-income economies. The job gap was 8.2% in wealthier nations and 20.5% in poorer countries in 2023. Meanwhile, the unemployment rate was steady at 4.5% in richer countries but stood at 5.7% in low-income nations.

ILO Director-General, Gilbert Houngbo cautioned that poor living standards, low productivity and ongoing inflation potentially increase inequality and hinder efforts to achieve social justice. Houngbo advocated for immediate, effective responses to these collective workforce issues.

Despite a considerable decrease post-2020, around a million more workers were living in extreme poverty in 2023, with an income of less than $2.15 per person, per day. Income inequality has broadened, with trends showing the degradation of real disposable income, which threatens future economic recovery.

Efforts to confront the underground economy have been insufficient, with the proportion of informal employment projected to remain unchanged, representing about 58% of the global workforce in 2024.

The persisting aftermath of the COVID-19 pandemic continues to impact productivity, with the ’long COVID’ victims suffering residual symptoms and ongoing health problems. Many who have re-joined the workforce are not working the same number of hours as before.

Women’s participation in the labor market has recovered quickly, but there is still a significant gender gap, particularly in emerging and developing nations. Younger generation unemployment also remains problematic. The ILO’s report highlighted the continued slowing of productivity growth, regardless of technological developments and increased investment.