ILO projected a minor rise in the worldwide unemployment rate to 5.2% in 2024

The International Labour Organization (ILO), a United Nations organization, has projected a minor rise in the worldwide unemployment rate to 5.2% in 2024. The projected increase would cause the worldwide unemployment rate to slightly increase from the 5.1% recorded in 2023, according to the ILO's 2024 World Employment and Social Outlook study, which was made public on Wednesday, January 10.

ILO Research Department Director Richard Samans clarified, saying, "We are projecting a modest fall in labor market performance, primarily because growth is declining around the world."

According to the estimate, there will be an additional two million jobless people worldwide, which would lead to an increase in the unemployment rate. The ILO noted that although there had been a short period of rapid development as nations recovered from the pandemic, overall labor productivity growth had quickly reverted to the slow rate seen over the preceding ten years.

The ILO's research issued a warning that real wages and real disposable income are frequently susceptible to unexpected price shocks during times of sluggish productivity development.

The situation is more worrying in high-income nations, where employment growth is forecast to become negative in 2024, with only minor gains expected in 2025, according to the ILO.

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According to the report's study, upper-middle-income countries are unlikely to see significant job improvements over the next two years. Low-income and lower-middle-income countries, on the other hand, will likely maintain substantial job growth.