Harder for labour markets to recover as global economy slows down: ILO

In 2024, global employment grew in line with the labour force, keeping the unemployment rate steady at 5 per cent, the report says. However, youth unemployment showed little improvement, remaining high at 12.6 per cent.

Informal work and working poverty returned to pre-pandemic levels, and low-income countries faced the most difficulties in creating decent jobs.

Challenges like geopolitical tensions, the rising costs of climate change and unresolved debt issues are putting labour markets under pressure.

Economic growth stood at 3.2 per cent in 2024, down from 3.3 and 3.6 per cent in 2023 and 2022 respectively. A similar level of growth is expected in 2025, although a gradual deceleration is expected to set in over the medium term.

Although inflation has decreased, it remains high, reducing the value of wages, the report finds. Real wages have only increased in some advanced economies, and most countries are still recovering from the effects of the pandemic and inflation.

Labour force participation rates have dropped in low-income countries, while increasing in high-income nations, mainly among older workers and women, the report finds. However, gender gaps remain wide, with fewer women in the workforce, limiting progress in living standards.

Among young men, participation has fallen sharply, with many not in education, employment or training (NEET). This trend is especially pronounced in low-income countries, where NEET rates for young men have risen by nearly 4 percentage points above the pre-pandemic historical average, leaving them vulnerable to economic challenges.

NEET rates in low-income countries rose in 2024, with young men reaching 15.8 million (20.4 per cent) and young women 28.2 million (37 per cent), marking increases of 500,000 and 700,000 respectively from 2023 figures.

Globally, 85.8 million young men (13.1 per cent) and 173.3 million young women (28.2 per cent) were NEET in 2024, up by 1 million and 1.8 million respectively from the previous year.

The global jobs gap—the estimated number of people who want to work but do not have a job—reached 402 million in 2024. This includes 186 million unemployed people, 137 million who are temporarily unavailable to work, and 79 million discouraged workers who have stopped looking for jobs.

While the gap has been gradually narrowing since the pandemic it is expected to stabilise over the next two years, ILO notes.

The study identifies potential for job growth in green energy and digital technologies. Renewable energy jobs have grown to 16.2 million worldwide, driven by investment in solar and hydrogen power. However, these jobs are unevenly distributed, with nearly half based in East Asia.

Digital technologies also offer opportunities, but many countries lack the infrastructure and skills to fully benefit from these advancements, the report adds.

ALCHEMPro News Desk (DS)