UN predicts global unemployment increase in 2024

GENEVA: The International Labour Organization (ILO) has projected a marginal increase in the global unemployment rate, reaching 5.2% in 2024, primarily due to a surge in joblessness within advanced economies. This forecast comes from the ILO's 2024 World Employment and Social Outlook report, indicating a rise of 2 million unemployed individuals and a shift from the 5.1% rate recorded in 2023.

Richard Samans, Director of ILO's research department, highlighted the anticipation of a modest decline in labor market performance, attributing it to the global economic slowdown. The ILO, a United Nations agency, observed that after a brief recovery from the pandemic, aggregate labor productivity growth has reverted to the sluggish pace experienced in the previous decade.

The report underscored the vulnerability of real disposable income and wages to sudden price shocks during periods of slow productivity growth. While upper-middle-income countries are expected to witness minimal employment gains in the next two years, low-income and lower-middle-income nations are projected to sustain robust job growth.

Of particular concern is the situation in high-income countries, where 2024 is anticipated to see a negative turn in employment growth, with only modest improvements expected in 2025, according to the ILO report.