Global analysts expect that after a slight improvement in 2023, this year the global unemployment rate will rise to 5.2%. This is stated in the report of the International Labor Organization, UNN reports.
Details
The ILO's World Employment and Social Outlook 2024 report predicts that the number of unemployed will increase by 2 million, raising the global unemployment rate to 5.2% from 5.1% in 2023.
First of all, the deterioration will occur due to rising unemployment in advanced economies.
The ILO stated that after a brief spike in growth as countries recovered from the pandemic, aggregate labor productivity growth quickly returned to the low rates seen over the previous decade.
In periods of slow productivity growth, real disposable income and real wages are often vulnerable to sudden price shocks
Employment in upper-middle-income countries is expected to grow slightly over the next two years, but job growth in low-income and lower-middle-income countries is expected to remain stable.
Addendum
It is noted that the return to pre-pandemic labor market participation rates varied across groups.
Women's participation has recovered rapidly, but a notable gender gap still persists, especially in transition and developing countries.
In addition, youth unemployment continues to be a concern. The percentage of people defined as NEET (Not in Employment, Education or Training) remains high, especially among young women, posing challenges to long-term employment prospects.
Recall
According to the World Bank, the global economy is on track for the worst half of growth in 30 years.
The World Bank's latest Global Economic Prospects report predicts that global growth will slow for the third consecutive year. In 2024, it will decline to 2.4% from 2.6% in 2023.