The International Labour Organization (ILO) released the latest edition of its annual World Employment and Social Outlook: Trends 2024 (WESO Trends) report on January 10, revealing that China, Russia and Mexico were the only countries in the world where real wages rose by the end of the last year.
The United Nations stated on Wednesday that the global unemployment rate would increase slightly in 2024, expressing concern over stagnant productivity, rising inequality and inflation affecting disposable income.
The UN labour agency claimed that economic recovery from the COVID-19 pandemic has slowed amid central banks’ actions. Nevertheless, global growth in 2023 was slightly higher than expected, with labour markets showing surprising resilience, according to the International Labour Organization. However, real wages declined in most G20 countries as wage growth failed to follow inflation.
Two million more workers are expected to be looking for work in 2024, pushing the global unemployment rate to 5.2 per cent.
ILO chief Gilbert Houngbo stated that some of the data, especially on economic growth and unemployment, was “encouraging.”
The report found that only China, Russia and Mexico “enjoyed positive real wage growth in 2023.” In other G-20 countries, wages fell, with the sharpest declines in Brazil (6.9 per cent), Italy (five per cent) and Indonesia (3.5 per cent).
“Falling living standards and weak productivity combined with persistent inflation create the conditions for greater inequality and undermine efforts to achieve social justice. And without greater social justice we will never have a sustainable recovery.”
Europe has been facing a wave of protests since the beginning of the year. For instance, German farmers are protesting amid subsidy cuts by the government in an attempt to partially cover the budget deficit for 2024.
