Unemployment and inequality will rise because multiple economic and political crises are threatening labour market recovery worldwide, according to the latest edition of the International Labour Organization Monitor on the World of Work.
According to the new ILO report, the outlook for global labour markets had worsened in recent months and, on current trends, job vacancies would decline and global employment growth would deteriorate significantly in the final quarter of 2022.
It stated, “Rising inflation is causing real wages to fall in many countries. This comes on top of significant declines in income during the COVID-19 crisis, which in many countries affected low-income groups most.”
According to ILO Monitor on the World of Work, 10th edition, worsening labour market conditions were affecting both employment creation and the quality of jobs, pointing out that there were already data suggesting a sharp labour market slowdown.
It stated that labour market inequalities were likely to increase, contributing to a continued divergence between developed and developing economies.
According to the report, “A set of multiple and overlapping crises, compounded by the Ukraine war and subsequent negative spillover effects, have materialised over 2022, which are deeply impacting the world of work.
“The effects are being felt through food and energy inflation, declining real wages, growing inequality, shrinking policy options and higher debt in developing countries. A slowdown in economic growth and aggregate demand will also reduce demand for workers as uncertainty and worsening expectations affect hiring.”
Director-General, ILO, Gilbert Houngbo, said, “Tackling this deeply worrying global employment situation, and preventing a significant global labour market downturn, will require comprehensive, integrated, and balanced policies both nationally and globally.”
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