11th Edition of the World of Work Report
The International Labour Organisation (ILO) has released its 11th edition of the World of Work report, providing insights into the projected global unemployment rates and the need for social protection. As the world recovers from the impact of the pandemic, it is crucial to address the disparities in employment opportunities and foster economic stability.
Projected Global Unemployment Rate
According to the ILO, the projected global unemployment rate for 2023 is expected to fall below pre-pandemic levels, reaching 5.3%, which corresponds to approximately 191 million individuals. While this indicates a positive trend, it is essential to consider the varying degrees of recovery among different regions and income groups.
Regions with Reduced Unemployment Rates
The report highlights regions that have successfully reduced their unemployment rates below pre-crisis levels. Latin America and the Caribbean, northern, southern, and western Europe, and central and Western Asia have demonstrated resilience in their labor markets, with unemployment rates ranging from 6.3% to 6.7%, showing a positive recovery trend.
Introducing the Jobs Gap Indicator
To measure the unmet demand for employment, especially in developing countries, the ILO has introduced a new indicator called the jobs gap. This indicator encompasses all individuals who desire employment but are currently jobless. It provides a comprehensive measure of the employment challenges faced globally.
Challenges for Low-Income Countries
Low-income countries face significant obstacles in closing the jobs gap. The report reveals that the jobs gap rate for these countries stands at a staggering 21.5%. Furthermore, this rate has increased from 19.1% in 2005 to 21.5% in 2023, highlighting the persistent employment challenges they encounter.
Rising Debt Levels and Policy Interventions
Developing countries also face additional challenges due to rising debt levels, which constrain their ability to implement effective policy interventions. This limitation hampers responses to complex threats and reinforces the existing employment divide between high-income and low-income countries.
The Benefits of Social Protection
The report emphasizes the importance of social protection policies in reducing disparities and fostering economic growth. Introducing universal basic old-age pensions in developing countries, for example, would lead to a 14.8% increase in GDP per capita within a decade and a significant reduction in extreme poverty by 6 percentage points.
The Need for Global Financial Support
To ensure a comprehensive recovery and bridge the employment gap, the report advocates for global financial support for job creation and social protection. By investing in these areas, countries can work towards narrowing the gap between rich and poor nations and fostering long-term economic stability.
Month: Current Affairs - June, 2023
Category: Reports & Indexes Current Affairs