Syllabus: GS-II
Subject: International Relations
Topic: Important International institutions, agencies and fora- their structure, mandate.
Context: The World Employment and Social Outlook Report warns that weak productivity and inflation lead to inequality.
Issue: Global Labour Market
Synopsis:
Highlights of the Report:
- The report warns of a global unemployment increase in 2024.
- Despite falling joblessness and jobs gap post-pandemic, growing social inequalities and stagnant productivity raise concerns.
- The global macroeconomic environment deteriorated in 2023 due to geopolitical tensions and inflation, leading to aggressive central bank moves.
- China, Türkiye, and Brazil’s slowdowns had adverse effects on global industrial activity, investment, and trade.
- Real wages declined in most G20 countries; only China, Russia, and Mexico saw positive growth. India and Türkiye also experienced positive growth, but data refers to 2022.
- Concerns arise that labour market imbalances are structural rather than cyclical. Job retention schemes were crucial in preventing skill loss.
- ILO Director-General Gilbert F. Houngbo expresses worry about falling living standards, weak productivity, and persistent inflation fostering greater inequality. Emphasizes the importance of quality employment for sustainable development and social justice.
Background:
International Labour Organisation:
Conclusion: Global labor market faces rising unemployment, widening inequalities, and structural imbalances, requiring urgent attention for sustainable development and social justice.
