ILO "Global Unemployment Rate Slightly Increases This Year... Impact of Worsening Inequality"

by Yoo Jaehoon

Published 10 Jan.2024 20:13(KST)

This year, the global unemployment rate is expected to increase slightly due to worsening social inequality.

On the 10th (local time), the International Labour Organization (ILO) made this forecast about the global labor market in its report titled "World Employment and Social Outlook: Trends 2024."

On the 10th, unemployment benefit applicants are entering the Western Employment Welfare Plus Center in Mapo-gu, Seoul. Photo by Mo Honam munonam@

According to the report, last year the global unemployment rate fell by 0.2 percentage points from the previous year to 5.1%. This was interpreted as a result of improvements in job situations across countries as the COVID-19 pandemic subsided.

However, the ILO expects that this year, 2 million more people worldwide will re-enter the ranks of job seekers, causing the unemployment rate to rise slightly to 5.2%. The projected number of unemployed people is approximately 192 million.

Worsening inequality and declining productivity were cited as factors worsening employment prospects. The ILO stated in the report, "After the end of COVID-19, the labor productivity growth rate, which showed signs of increase for a short period, is slowing down despite technological advances and increased investment."

In particular, the ILO diagnosed that this decline in productivity, combined with inflation and a decrease in real disposable income, generates social inequality. Although the unemployment rate fell slightly last year, disparities by country and gender were evident.

The "job gap rate," which is the proportion of those willing to work but unable to find employment, was found to be about 8.2% in high-income countries, but as high as 20.5% in low-income countries. Last year's unemployment rates also showed a gap, with 4.5% in high-income countries and 5.7% in low-income countries.

The extremely poor, defined as those earning less than $2.15 (about 2,800 won) per person per day based on purchasing power parity, increased by about 1 million worldwide last year. The proportion of non-regular jobs is predicted to account for 58% of jobs globally this year, similar to the previous year.

The ILO said, "The situation of declining living standards and falling productivity amid persistent inflation deepens inequality," adding, "Without efforts to achieve social justice, sustainable recovery in the labor market will be impossible."