Job Growth Will Drop By 50% Globally In 2023, According To ILO
In 2022, global job growth was recorded at 2%. But for 2023, the International Labour Organization (ILO) believes it will drop to 1%. Some of the reasons for this drop in employment growth are high inflation, the Ukraine war, and high-interest rates.
In addition, the ILO report also revealed an increase in unemployed people around the globe. In 2023, ILO believes that the total number of unemployed people will reach 208 million, with an increase of 3 million. They also stated how inflation would have a major effect on real wages, and this will be a global phenomenon.
This news is coming at a time when countries around the globe are trying to recover from the economic shock. In addition, we have the coronavirus that is wreaking havoc across China.
According to the ILO director, the slowdown in global job growth means that the job losses during COVID-19 will not be recovered for the next few years. On that front, ILO believes that recovery before 2025 will not be possible.
Informal Jobs Will Recover In The Next Few Years
One particular trend around the globe is a reduction of informal jobs. But in the next few years, we will likely see a reversal of this trend which is actually good news for the global job market.
Earlier, ILO was estimating growth of 1.5% in the job sector for the year 2023. But now, the forecast has been revised lower to 1% only for the current year.
As an aftermath of the current slowdown, workers around the globe will have to accept jobs of lower quality. In addition, these jobs will also pay low with fewer work hours.
ILO believes that the pace of prices will increase at a much higher rate than the labor incomes. With this increase in the cost of living, more people will be pushed into poverty.
And if we witness a slowdown in the global economy, it will make the situation even worse in 2023.