World Employment and Social Outlook

Context:

The International Labour Organisation (ILO) presents the World Employment and Social Outlook: Trends 2024 report, signaling a projected rise in the global unemployment rate in 2024. Growing inequalities and stagnant productivity emerge as significant concerns.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Key Highlights of ILO’s Trends 2024 Report
2. International Labour Organisation (ILO): Overview

Key Highlights of ILO’s Trends 2024 Report

Resilient Labor Markets:

• Despite challenging economic conditions, global labor markets show resilience.
• Improvements noted in both unemployment rate and jobs gap rate.

Global Unemployment Rate:

• In 2023, the global unemployment rate is 5.1%, a slight improvement from 2022.
• Projected increase in 2024, with an additional two million job seekers, pushing the rate to 5.2%.

Uneven Recovery:

• Pandemic recovery varies, exposing new vulnerabilities and crises.
• Disparities persist between higher and lower income countries in unemployment rates and jobs gap rates.

Income Inequality and Disposable Income:

• Widening income inequality observed.
• Decline in disposable incomes in the majority of G20 nations, impacting aggregate demand.

Working Poverty:

• Despite a quick decline after 2020, workers in extreme poverty increased by about 1 million in 2023.
• Working poverty, especially in informal work, remains a persistent challenge.

Informal Work and Labor Market Participation:

• Informal work rates expected to remain stable, constituting around 58% of the global workforce in 2024.
• Varied return to pre-pandemic labor market participation rates, with persistent gender gaps and high youth unemployment rates.

Labor Productivity:

• After a brief post-pandemic boost, labor productivity returns to low pre-pandemic levels.
• Slowing productivity growth despite technological advances and increased investment.

Structural Challenges:

• Imbalances observed may be structural, posing threats to livelihoods and businesses.
• Challenges include falling living standards, weak productivity, persistent inflation, and increased inequality.

Global Wage Trends:

• Real wages in India and Turkey show positive trends relative to other G20 countries.
• Other G20 nations experience declines, particularly pronounced in Brazil, Italy, and Indonesia.

International Labour Organisation (ILO): Overview

Establishment:

• Founded in 1919 under the Treaty of Versailles post-World War I.
• Established to promote universal and lasting peace through social justice.

UN Specialized Agency:

• Became a specialized agency of the United Nations in 1946.

Tripartite Structure:

• Unique tripartite organization involving representatives of governments, employers, and workers in its executive bodies.

Membership:

• India is a founding member, and the ILO has a total of 187 member states.

Leadership Role:

• In 2020, India assumed the Chairmanship of the Governing Body of ILO.

Headquarters:

• Located in Geneva, Switzerland.

Awards and Recognition:

• Awarded the Nobel Peace Prize in 1969 for efforts in improving fraternity and peace among nations.
• Recognized for pursuing decent work, justice for workers, and providing technical assistance to developing nations.

-Source: The Hindu