Global Unemployment Rate drop slightly in 2024: ILO

Global Unemployment Rate Drop Slightly in 2024: ILO

Unequal access to employment opportunities remains a problem worldwide, even as new projections from the ILO show an improvement in global joblessness this year.

Context: The International Labour Organization (ILO) has indicated that the global unemployment rate is projected to decrease marginally from 5.0% in 2023 to 4.9% this year, despite ongoing disparities in labour markets.

Highlights of Global Unemployment

Regional Insights

United States: The reduction in unemployment is notably more significant in the United States compared to the rest of the world in the initial months of 2024.

Economic Factors Influencing Unemployment

Economic Growth: Global economic growth has been marginally better than expected, aiding in the reduction of unemployment.
Interest Rates: The report highlighted the lagged effects of higher interest rates which slowed down some sectors such as corporate borrowing but locked in lower rates for households which are less sensitive to Federal Reserve’s tightening compared to previous times.

International Monetary Fund (IMF) Outlook

Economic Growth Forecast: The International Monetary Fund (IMF) anticipates a global growth rate of 3.2 per cent for the year 2024.
US Specific Forecast: The growth forecast for the US is somewhat subdued due to various economic adjustments.

ILO’s Perspective on Labor Market

Market Outlook: While there is a slight improvement, the International Labour Organization (ILO) remains cautious about the labour market’s future due to uncertainties and the potential need for policy adjustments.
Long-term Trend: Despite the improvement in 2024, the unemployment trend is expected to worsen slightly in 2025.

International Labour Organisation

Founded: The ILO was established on April 11, 1919 by the Treaty of Versailles.
- It’s a specialised agency of the United Nations.
Members: Has 187 member states, including 186 UN member states plus the Cook Islands.
Headquarters: Located in Geneva, Switzerland.
Fundamental Principles: Focuses on freedom of association, elimination of forced labour, abolition of child labour, and non-discrimination at work.
Nobel Peace Prize: Awarded in 1969 for its efforts to promote peace and justice for workers.
Director-General: Gilbert Houngbo, elected in 2022.
Mission: To advance social and economic justice through setting international labour standards.