Global unemployment rate set to increase in 2024: ILO report

The International Labor Organization (ILO) released a report titled "World Employment and Social Outlook Trends: 2024 (WESO Trends)," which indicates that the global unemployment rate is set to rise from 5.1 percent in 2023 to 5.2 percent in 2024.

According to the report, the unemployment and jobs gap rates, representing the number of individuals seeking employment, have fallen below pre-pandemic levels. The global unemployment rate in 2023 was 5.1 percent, a slight improvement from 2022.

However, the report identifies emerging fragility beneath these positive indicators, projecting a worsening outlook for the labor market and global unemployment in 2024.

The forecast anticipates an additional two million workers seeking jobs, pushing the global unemployment rate to 5.2 percent.

"Despite lower unemployment and positive employment growth, real wages declined in most G20 countries as wage increases failed to keep pace with inflation," the report stated.

Significant disparities persist between higher and lower-income countries. In 2023, the jobs gap rate in high-income countries was 8.2 percent, compared to 20.5 percent in low-income nations.

Similarly, the unemployment rate in 2023 was 4.5 percent in high-income countries and 5.7 percent in low-income countries.

Despite a decline since 2020, working poverty is expected to persist, with an increase in the number of workers living in extreme and moderate poverty in 2023.

In addition, the report highlights a widening income inequality, warning that the erosion of real disposable income poses challenges for aggregate demand and a sustained economic recovery.