The United Nations warned on Wednesday that the global unemployment rate is expected to increase slightly in 2024 due to stagnant productivity, worsened inequalities, and inflation affecting disposable income. According to the UN’s labour agency, the economic recovery from the Covid-19 pandemic has decelerated, influenced by ongoing geopolitical issues and continued inflation leading to aggressive actions by central banks. Despite the challenges, global growth in 2023 was marginally higher than predicted, and labour markets demonstrated surprising resilience, according to the International Labour Organization (ILO).

Additionally, real wages have declined in most G20 countries, as wage increases couldn’t match inflation rates. In 2024, an additional two million workers are predicted to be searching for jobs, pushing the global unemployment rate to 5.2 percent. The ILO also noted that the majority of the G20 nations saw declines in disposable incomes and indicated that the decrease in living standards due to inflation is unlikely to be offset quickly.

A concerning trend of burgeoning inequalities and stagnant productivity was also highlighted in the ILO’s World Employment and Social Outlook Trends report for 2024. The report found the growth and unemployment figures encouraging, but a more in-depth analysis revealed growing labour market imbalances that threaten progress towards achieving social justice.

Among G20 countries, only China, Russia and Mexico saw positive real wage growth in 2023. In comparison, other countries, including Brazil, Italy, and Indonesia, experienced significant wage declines. The ILO Chief, Gilbert Houngbo, warned that falling living standards and weak productivity, together with persistent inflation, increase inequality and undermine efforts to achieve social justice. He further emphasized the necessity of greater social justice for a sustainable recovery.