Business a.m.
Global unemployment has been projected to dip slightly in 2024, according to the International Labour Organization’s (ILO) latest World Employment and Social Outlook report.
The report estimates that the worldwide unemployment rate will fall to 4.9 per cent in 2024, a slight improvement from the 5.0 per cent reported in 2023. In a previous forecast, the organisation had predicted that global unemployment would settle at 5.2 percent this year.
Despite the encouraging news of a slight drop in global unemployment rates, the ILO report also cautioned against ignoring the lingering issue of labour market inequalities. The report observed that while the trend of falling unemployment rates is a positive development, the benefits of this trend are likely to be short-lived, as the global unemployment rate is expected to stall at 4.9 per cent in 2025.
In its comprehensive review of global unemployment, the ILO’s report points to a vast jobs gap of 402 million people. The jobs gap, which is a crucial metric in the ILO’s analysis,measures the total number of people who are without a job but actively seeking employment.
In 2024, the jobs gap is estimated to reach 402 million people, including 183 million who have been officially classified as unemployed.
The ILO report exposed the stark disparities in employment opportunities between men and women, with women in low-income countries disproportionately impacted by a dearth of employment options.
The data revealed that, in low-income countries, the job gap for women stood at a staggering 22.8 percent, significantly higher than the 15.3 percent recorded for men.
Even in high-income countries, the job gap was twice as high for women (9.7 percent) as it was for men (7.3 percent).
The ILO report identified family responsibilities as a significant factor driving the persistent gender gap in employment rates, highlighting a systemic issue that continues to hinder women’s economic empowerment and participation in the workforce.
This disparity is particularly pronounced when looking at global employment figures. While 69.2 percent of working-age men are projected to be employed in 2024, women’s employment rate is only expected to reach 45.6 percent.
The report noted further: “Even when women are employed, they tend to earn far less than men, particularly in low-income countries. While women in high-income countries earn seventy-three cents compared to a dollar earned by men, this figure drops to just forty-four cents in low-income countries.
“Despite the adoption of the 2030 Agenda for Sustainable Development in 2015, progress in reducing poverty and informality has slowed down in comparison to the previous decade. The number of workers in informal employment has grown from approximately 1.7 billion in 2005 to 2.0 billion in 2024.”
In order to make meaningful progress towards achieving the Sustainable Development Goals (SDGs), the ILO stressed the critical need for a multifaceted approach that prioritises poverty reduction and inequality mitigation.
In a statement accompanying the release of the report, Gilbert Houngbo, director-general of the ILO, commented on the persistent and widening inequalities in the global labor market.
While acknowledging the progress made by the ILO in addressing these challenges, Houngbo expressed concern over the unequal playing field that persists in the workplace.
He noted further that the report serves as a reminder of the urgent need to address these critical employment challenges, especially for women, who continue to face discrimination and barriers to participation in the labor market.
Houngbo stressed the critical need for inclusive policies in ensuring a recovery from the economic fallout of recent years that benefits all workers.
He stated, “We must place inclusion and social justice at the core of our policies and institutions. Unless we do, we will fall short of our objective to ensure strong and inclusive development.”
