Global Unemployment Rate Expected to Reach 5.2% in 2024, Says ILO

• 12 Jan 2024

The International Labour Organization (ILO) revealed in its 2024 World Employment and Social Outlook report that the global unemployment rate is anticipated to slightly increase to 5.2% this year, attributing this rise to heightened joblessness in advanced economies.

Key Points

• Moderate Rise in Unemployment: ILO's forecast predicts a 2 million increase in the number of unemployed individuals, causing a marginal uptick in the global unemployment rate from 5.1% in 2023 to 5.2% in 2024.
• Productivity Growth Challenges: The ILO report highlighted a return to slow productivity growth worldwide after a brief post-pandemic recovery. Such sluggish growth poses risks to real disposable income and wages during sudden price shocks.
• Concerns for High-Income Countries: ILO expressed particular concern for high-income countries, projecting negative employment growth in 2024 and only anticipating modest improvements in 2025.
• Regional Disparities: While upper-middle-income countries may witness little employment growth in the next two years, low-income and lower-middle-income countries are expected to maintain robust job gains.
• Persisting Challenges Beyond Recovery: Despite initial growth spurts during post-pandemic recovery, the report indicates challenges in sustaining employment gains, especially in the face of a return to sluggish productivity growth.