The International Labour Organization (ILO) has released its “World Employment and Social Outlook: May 2024 Update,” projecting a slight decline in global unemployment this year. However, the report also underscores ongoing disparities in labour markets, with women in low-income countries facing significant challenges.
MODEST DECLINE IN UNEMPLOYMENT
The ILO predicts the global unemployment rate will decrease to 4.9% in 2024, down from 5.0% in 2023. This figure is a revision from the previous projection of 5.2%. Despite this positive trend, the report warns that the downward trajectory is expected to level off in 2025, with unemployment remaining at 4.9%.
GLOBAL UNEMPLOYMENT; PERSISTENT JOBS GAP
Despite the reduction in unemployment, the ILO highlights a persistent ‘jobs gap’—the number of individuals without a job but desiring to work. In 2024, this gap is estimated at 402 million people, including 183 million unemployed individuals. This statistic underscores the continuing challenge of creating adequate employment opportunities globally.
GLOBAL UNEMPLOYMENT: DISPROPORTIONATE IMPACT ON WOMEN
Women, particularly in low-income countries, face substantial employment challenges. The jobs gap for women in these regions is 22.8%, compared to 15.3% for men. In high-income countries, the gap is 9.7% for women and 7.3% for men. Family responsibilities largely contribute to this disparity, with only 45.6% of working-age women employed globally compared to 69.2% of men.
GLOBAL UNEMPLOYMENT: WAGE INEQUALITY
The report reveals significant wage disparities between men and women, especially in low-income countries. Women in high-income countries earn seventy-three cents for every dollar earned by men, while this figure drops to just forty-four cents in low-income countries. This stark contrast highlights the economic inequities faced by women worldwide.
SLOW PROGRESS ON SUSTAINABLE DEVELOPMENT GOALS
Progress towards the Sustainable Development Goals (SDGs), particularly in reducing poverty and informality, has slowed. The number of workers in informal employment has increased from approximately 1.7 billion in 2005 to 2.0 billion in 2024. This rise in informal employment poses a significant barrier to achieving the SDGs by 2030.
NEED FOR INCLUSIVE POLICIES
ILO Director-General Gilbert F. Houngbo emphasizes the need for inclusive policies that address the needs of all workers to achieve sustainable recovery. “To achieve a sustainable recovery whose benefits are shared by all, we must work towards inclusive policies that take into consideration the needs of all workers. We must place inclusion and social justice at the core of our policies and institutions,” he stated.
COMPREHENSIVE APPROACH TO REDUCING POVERTY AND INEQUALITY
The report concludes that a comprehensive approach is necessary to reduce poverty and inequality effectively. This approach should include measures to support formal employment, improve working conditions, and ensure fair wages, particularly for women and marginalized groups in low-income countries.
What is the projected global unemployment rate for 2024?
The ILO projects the global unemployment rate for 2024 to be 4.9%, down from 5.0% in 2023.
What is the ‘jobs gap’ mentioned in the report?
The ‘jobs gap’ refers to the number of people who are not employed but want to work. For 2024, this gap is estimated at 402 million individuals.
How are women in low-income countries particularly affected by labour market inequalities?
Women in low-income countries face higher unemployment rates and significant wage disparities compared to men. The jobs gap for women in these regions is 22.8%, compared to 15.3% for men.
What are the main factors contributing to the employment disparity between men and women?
Family responsibilities and societal norms are major factors contributing to the lower employment rates among women. Globally, only 45.6% of working-age women are employed compared to 69.2% of men.
How does informal employment affect progress towards the Sustainable Development Goals?
The rise in informal employment, which lacks job security and benefits, hinders progress towards achieving the SDGs, particularly in reducing poverty and inequality.
What policy recommendations does the report make to address these challenges?
The report calls for inclusive policies that address the needs of all workers, comprehensive measures to reduce poverty and inequality, and efforts to support formal employment and fair wages, especially for women and marginalized groups.
The 2024 ILO report presents a mixed picture of global employment trends. While the modest decline in unemployment is a positive sign, persistent inequalities, particularly for women in low-income countries, highlight the need for targeted, inclusive policies. Addressing these disparities is crucial for achieving sustainable, equitable development and ensuring that the benefits of economic recovery are shared by all.
