Released on: January 16, 2023
Released by: International Labour Organisation
The International Labour Organisation (ILO) published World Employment and Social Outlook Trends 2023 (WESO 2023), which thoroughly evaluates how the global labour market rebound has unfolded. It describes a gradual and unpredictable recovery as the outbreak significantly influences global job markets, with various countries’ responses.
According to the International Labour Organization (ILO), worldwide employment will expand by only 1% in 2023, which is lower than half of last year. The global unemployment rate is also predicted to climb slightly, reaching 208 million population. According to the ILO’s World Employment and Social Outlook Trends report, this equates to a worldwide unemployment rate of 5.8% or 16 million people.
Key Findings
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Pay cut, fewer hours
The UN research cautions that today’s economic slump “means that many people may have to accept inferior quality positions, frequently at very poor wages, sometimes even with inadequate hours”. This is already a situation in Europe and other wealthy nations due to the Ukraine war and the ongoing interruption of global supply networks, undermining the powerful stimulus packages to deal with the COVID-19 problem.
According to the UN News, “Real wages we project for 2022 to have declined by 2.2% in advanced countries and of course, Europe makes up a significant proportion of advanced countries, versus a rise in real wages in developing countries,” said Richard Samans, Director of ILO’s Research Department.
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Setback in the informal sector
An equally concerning issue is the possibility that attempts to assist the world’s two billion informal sector workers in transitioning to the official job sector, where they may benefit from social security and training possibilities, would be thwarted.
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The SDGs on poverty are under threat
According to ILO research, the cost-of-living problem threatens to force additional people into poverty as prices grow faster than salaries. This tendency follows severe income decreases recorded during the COVID-19 crisis, primarily impacting low-income populations in several nations. Today, 214 million employees live in extreme poverty, “living on $1.90 each day,” according to Ms. Tomei. Although remarkable improvement in poverty reduction has been made in recent decades, “many of these achievements” have been wiped away by the effect of the coronavirus and the current economic crisis, according to the ILO officer. The report also estimates that the worldwide job shortfall will be 473 million in 2022.
This is around 33 million higher than in 2019. It is the number of jobless persons who wish to work but are not actively seeking employment, either because they’re disheartened or possess other commitments such as care duties.
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Women are often neglected
According to Ms. Tomei of the ILO, the uneven growth of the global labour market remains a source of worry. “Serious gender disparities in labour force participation, wages, and social protection persist to exist. There are 290 million kids who are not in work, school, or training, and young women fare much worse.”
