Two Million People May Lose Their Jobs in 2024 – ILO

In its recent report, “World Employment and Social Outlook: Trends 2024,” the International Labour Organisation (ILO) has sounded a warning, projecting that approximately two million individuals worldwide may face unemployment in the year 2024.

The ILO highlights a global unemployment rate increase from 5.1% in 2023 to 5.2%, despite acknowledging improvements in joblessness and narrowing job gaps below pre-pandemic levels. The 2023 global unemployment rate witnessed a modest improvement from 2022, standing at 5.1%, while the jobs gap and labour market participation rates showed positive trends.

Despite progress, the report notes that working poverty, which saw a decline after 2020, might persist. In 2023, the number of workers living in extreme poverty (earning less than US$2.15 per person per day in purchasing power parity terms) increased by around one million, and those in moderate poverty (earning less than US$3.65 per day per person in PPP terms) rose by 8.4 million.

The ILO warns of declining disposable incomes in most G20 countries, with the erosion of living standards due to inflation unlikely to be swiftly compensated.

Furthermore, the report reveals disparities between high and low-income countries, with the jobs gap rate in 2023 being 8.2% in high-income countries compared to a staggering 20.5% in low-income countries. Unemployment rates in 2023 also differed, standing at 4.5% in high-income countries and 5.7% in low-income countries.

Highlighting the persistence of informal work, the report anticipates that informal employment will account for approximately 58% of the global workforce in 2024. As the global economic landscape continues to evolve, these projections emphasize the challenges ahead in maintaining stable employment and improving living standards on a global scale.