Women’s employment rates are lower than men’s, limiting progress in improving living standards. Global economic recovery slowing, warns ILO Economic Development
Geopolitical tensions, rising costs of combating climate change and debt problems are putting pressure on labour markets, according to a report by the International Labour Organization (ILO) released on Thursday. The new report highlights a slowdown in global economic growth that is hurting labour markets and holding back recovery from economic downturns.
The unemployment rate remained stable in 2024, similar to the previous year, with young people continuing to face much higher unemployment rates, with no clear signs of improvement.
Informal employment and the share of people in working poverty have returned to pre-pandemic levels, with low-income countries facing the greatest challenges in creating decent jobs.
Moderate growth in the medium term
The global economy continued to grow at a moderate pace in 2024, slowing towards the end of the year. Moderate growth is expected to persist in 2025 and over the medium term.
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Despite falling inflation, economies have yet to fully recover from the income losses associated with the pandemic, partly due to weak employment growth.
Real wages have grown only in some advanced economies, the report says, and most countries are still recovering from previous crises.
Employment share
The labor force participation rate has fallen in low-income countries, while it has continued to rise in high-income countries, driven mainly by older people and women.
However, gender differences remain significant, with women’s employment rates lower than men’s, limiting progress in improving living standards population.
Labour force participation has fallen sharply among young men, with many not in education, employment, or training, leaving them vulnerable to economic hardship. While this is particularly noticeable in low-income countries, similar trends are seen across the world and affect not only men but women as well.
Lack of jobs
The number of people who want to work but are unable to work is estimated to reach 402 million in 2024. This includes 186 million unemployed, 137 million temporarily unable to work, and 79 million people who have given up looking for work due to persistent frustration.
With labor force participation rates gradually declining, the job shortage continues to decline as it did before the pandemic, but is expected to stabilize over the next two years.
New Opportunities
Research finds potential for job growth in green energy and digital technologies.
Renewable energy jobs have increased to 16.2 million worldwide, thanks to investment in solar and hydrogen technologies. However, these jobs are unevenly distributed, with almost half of them in East Asia.
Digital technologies also offer opportunities, but many countries lack the infrastructure and skills to take full advantage of these advances, the report says.
ILO Recommendations
ILO Director-General Gilbert Houngbo stressed the need for urgent action. “Decent work and productive employment are essential to achieving social justice and the Sustainable Development Goals,” he said.
The report’s recommendations include boosting productivity through investment in skills training, expanding social protection and stimulating the use of private funds to support local development in low-income countries.
“To avoid heightened social tensions, worsening the impacts of climate change and mounting debt burdens, we must act now to address labour market challenges and create a more equitable and sustainable future,” Houngbo stressed.