World Employment and Social Outlook

Context: Recently ILO has released its ‘World Employment and Social Outlook: Trends 2024’ report.

Key findings:

• The International Labour Organisation (ILO) released the 'World Employment and Social Outlook: Trends 2024' report, indicating a projected increase in the global unemployment rate in 2024.
• Both joblessness and the jobs gap have fallen below pre-pandemic levels, but concerns persist about growing social inequalities and stagnant productivity.
• In India, real wages are considered positive compared to other G20 countries, according to the ILO.
• The macroeconomic environment deteriorated in 2023, with geopolitical tensions, inflation, and aggressive moves by central banks affecting global industrial activity, investment, and trade.
• Despite the economic slowdown, global growth in 2023 exceeded expectations, and labor markets demonstrated surprising resilience.
• The global unemployment rate in 2023 was 5.1%, showing a modest improvement from 2022, while the jobs gap remained high at close to 435 million.
• Labour market participation rates mostly recovered from pandemic lows, but concerns are rising that imbalances may be structural rather than cyclical.
• Real wages declined in the majority of G20 countries due to wage increases lagging behind inflation.
• In 2023, the number of workers living in extreme poverty (earning less than $2.15 per day per person in PPP terms) grew globally by about one million.
• China, the Russian Federation, and Mexico experienced positive real wage growth in 2023, with China and Russia having the highest labor productivity growth.
• India and Türkiye also saw positive real wage growth, but the available data refer to 2022 relative to 2021.

International Labour Organization:

• It  serves as the United Nations agency dedicated to the global realm of employment.
• Mandate: Its primary purpose is to promote social and economic justice by establishing international labor standards.
• Motto: The ILO's commitment to achieving peace is currently articulated as the pursuit of "Decent Work for all."
• HQ: Located in Geneva, Switzerland.
• Parent organization: Affiliated with the Economic and Social Council of the United Nations.
• Additionally, it is a participant in the United Nations Development Group (UNDP), a collective effort of UN organizations striving to address the Sustainable Development Goals.
• History: Established in 1919 under the Treaty of Versailles, concluding World War I, the ILO originated from the belief that enduring and global peace is achievable through the foundation of social justice. In 1946, it attained the status of a specialized agency within the newly established United Nations.
• Members: The ILO boasts 187 member states, encompassing 186 out of 193 UN member states along with the Cook Islands.
• Structure: It stands as the singular tripartite U.N. agency, uniting representatives from governments, employers, and workers of 187 member states.