Geneva: The International Labour Organization (ILO), a United Nations agency, announced on Wednesday that the global unemployment rate is anticipated to decrease marginally to 4.9% this year from 5.0% in 2023, although disparities persist in labour markets worldwide.
Earlier in January, the ILO had forecasted a slight uptick in unemployment to 5.2%, primarily due to an expected increase in joblessness in advanced economies. However, recent data suggests a more positive trend, with lower-than-anticipated unemployment rates reported in China, India, and high-income countries.
Despite this optimistic outlook, the ILO projects that the downward trajectory in unemployment will plateau in 2025, with the rate remaining at 4.9%.
The report attributes this revision to the global economic growth, which has surpassed expectations in the initial months of 2024, particularly in the United States. Additionally, a decline in inflation rates has provided relief to household incomes.
Also Read | UK’s Pioneering Black Female Lawmaker ‘Dismayed’ by Potential Labour Candidacy Bar
In April, the International Monetary Fund (IMF) revised its 2024 forecasts for global growth to 3.2%, up from the 3.1% estimated in January, largely driven by improvements in the U.S. economic outlook.
According to the ILO, this stabilization in the macroeconomic landscape is translating into a relatively stable labour market outlook. However, uncertainties loom in the medium term due to anticipated adjustments in monetary and fiscal policies worldwide. Restrictive macroeconomic measures are expected to have a delayed impact on the labour market, further complicating the future outlook.
