The International Labour Organization announced that the global unemployment rate is expected to rise slightly in 2024, expressing concern over stagnant productivity, worsening inequality, and inflation that is eroding disposable income. The global unemployment rate decreased from 5.3% in 2022 to 5.1% in 2023, but it is expected that two million additional workers will seek jobs in 2024, which will contribute to an increase in the rate to 5.2%, according to the International Labour Organization's report on global employment trends and social outlook for 2024.
The UN agency noted that the economic recovery after the COVID-19 pandemic has slowed amid geopolitical tensions and ongoing inflation, which has prompted central banks to take preemptive measures. However, global growth in 2023 was slightly higher than expected, and labor markets demonstrated surprising resilience, according to the International Labour Organization. The organization also stated that real wages have declined in most G20 countries as wage increases have not kept pace with inflation. It highlighted that disposable income has decreased in the majority of G20 countries, and overall, it is unlikely that the erosion of living standards caused by inflation will be quickly compensated.
