11:48 am, Friday, 7 February 2025

Global economic slowdown hinders labour market recovery: ILO

  • Bizbd Report
  • Update Time : 10:30:20 pm, Thursday, 16 January 2025
  • 79

The global economy is slowing down, making it more difficult for labour markets to recover fully, according to the latest report of International Labour Organization.

In 2024, global employment remained flat, growing only due to an increase in the labour force, which kept the unemployment rate steady at 5.0 per cent, the report stated.

The report, titled ‘World Employment and Social Outlook 2025’ and published on Thursday, revealed that youth unemployment showed little improvement, remaining high at 12.6 per cent.

Informal work and working poverty returned to pre-pandemic levels, with low-income countries facing the most significant challenges in creating decent jobs, it noted.

Pointing out the challenges to recovery, the report highlighted that geopolitical tensions, the rising costs of climate change, and unresolved debt issues are putting labour markets under pressure.

Although inflation has decreased, it remains high, reducing the value of wages, the report found.

Real wages have only increased in some advanced economies, and most countries are still recovering from the effects of the pandemic and inflation.

Labour force participation rates have dropped in low-income countries while increasing in high-income nations, mainly among older workers and women, the report observed.

However, gender gaps remain wide, with fewer women in the workforce, limiting progress in living standards. Among young men, participation has fallen sharply, with many not in education, employment, or training (NEET).

This trend is particularly pronounced in low-income countries, where NEET rates for young men have risen by nearly 4 percentage points above the pre-pandemic historical average, leaving them vulnerable to economic challenges, according to the report.

NEET rates in low-income countries increased in 2024, with 15.8 million young men (20.4 per cent) and 28.2 million young women (37.0 per cent) being NEET, marking increases of 500,000 and 700,000, respectively, from 2023.

Globally, 85.8 million young men (13.1 per cent) and 173.3 million young women (28.2 per cent) were NEET in 2024, up by 1.0 million and 1.8 million, respectively, from the previous year.

Alarmingly, the NEET rate in Bangladesh stands at 30.9 per cent, with 11.1 per cent for males and 49.3 per cent for females, a statement issued by the ILO Bangladesh country office said on Thursday.

Considering these challenges, ILO Bangladesh Country Director Tuomo Poutiainen stressed the importance of prioritising skills development and employability for youth and establishing effective labour market governance mechanisms aligned with international standards to promote employment and decent work.

‘To achieve inclusive and sustained economic growth, as well as its ambition of becoming a middle-income country, Bangladesh must prioritise active labour market policies and the creation of decent employment opportunities, particularly for youth, women, and marginalised groups,’ the statement quoted Poutiainen.

Nearly half of Bangladesh’s working-age population remains outside the labour force, highlighting significant underutilisation of its demographic potential.

Citing ILOSTAT (2022) data, it added that the labour force participation rate is 49.5 per cent, with stark gender disparities—78.5 per cent for males and only 21.25 per cent for females.

High youth vulnerability, especially among women, along with the prevalence of low-productivity jobs, informality in employment, including in agriculture, continues to undermine economic progress and social justice, it said.

The global jobs gap—the estimated number of people who want to work but do not have a job—reached 402 million in 2024. This includes 186 million unemployed people, another 137 million who are mainly discouraged workers, and 79 million who would like to work but have obligations, such as caregiving, that hinder them from taking up employment.

The study identifies potential for job growth in green energy and digital technologies.

The report makes several recommendations to address current challenges, including boosting productivity by investing in skills training, education, and infrastructure to support economic growth and job creation, as well as expanding social protection by providing better access to social security and safe working conditions to reduce inequality.

It also stresses the importance of using private funds effectively, suggesting that low-income countries can harness remittances and diaspora funds to support local development.

Global economic slowdown hinders labour market recovery: ILO

Update Time : 10:30:20 pm, Thursday, 16 January 2025

The global economy is slowing down, making it more difficult for labour markets to recover fully, according to the latest report of International Labour Organization.

In 2024, global employment remained flat, growing only due to an increase in the labour force, which kept the unemployment rate steady at 5.0 per cent, the report stated.

The report, titled ‘World Employment and Social Outlook 2025’ and published on Thursday, revealed that youth unemployment showed little improvement, remaining high at 12.6 per cent.

Informal work and working poverty returned to pre-pandemic levels, with low-income countries facing the most significant challenges in creating decent jobs, it noted.

Pointing out the challenges to recovery, the report highlighted that geopolitical tensions, the rising costs of climate change, and unresolved debt issues are putting labour markets under pressure.

Although inflation has decreased, it remains high, reducing the value of wages, the report found.

Real wages have only increased in some advanced economies, and most countries are still recovering from the effects of the pandemic and inflation.

Labour force participation rates have dropped in low-income countries while increasing in high-income nations, mainly among older workers and women, the report observed.

However, gender gaps remain wide, with fewer women in the workforce, limiting progress in living standards. Among young men, participation has fallen sharply, with many not in education, employment, or training (NEET).

This trend is particularly pronounced in low-income countries, where NEET rates for young men have risen by nearly 4 percentage points above the pre-pandemic historical average, leaving them vulnerable to economic challenges, according to the report.

NEET rates in low-income countries increased in 2024, with 15.8 million young men (20.4 per cent) and 28.2 million young women (37.0 per cent) being NEET, marking increases of 500,000 and 700,000, respectively, from 2023.

Globally, 85.8 million young men (13.1 per cent) and 173.3 million young women (28.2 per cent) were NEET in 2024, up by 1.0 million and 1.8 million, respectively, from the previous year.

Alarmingly, the NEET rate in Bangladesh stands at 30.9 per cent, with 11.1 per cent for males and 49.3 per cent for females, a statement issued by the ILO Bangladesh country office said on Thursday.

Considering these challenges, ILO Bangladesh Country Director Tuomo Poutiainen stressed the importance of prioritising skills development and employability for youth and establishing effective labour market governance mechanisms aligned with international standards to promote employment and decent work.

‘To achieve inclusive and sustained economic growth, as well as its ambition of becoming a middle-income country, Bangladesh must prioritise active labour market policies and the creation of decent employment opportunities, particularly for youth, women, and marginalised groups,’ the statement quoted Poutiainen.

Nearly half of Bangladesh’s working-age population remains outside the labour force, highlighting significant underutilisation of its demographic potential.

Citing ILOSTAT (2022) data, it added that the labour force participation rate is 49.5 per cent, with stark gender disparities—78.5 per cent for males and only 21.25 per cent for females.

High youth vulnerability, especially among women, along with the prevalence of low-productivity jobs, informality in employment, including in agriculture, continues to undermine economic progress and social justice, it said.

The global jobs gap—the estimated number of people who want to work but do not have a job—reached 402 million in 2024. This includes 186 million unemployed people, another 137 million who are mainly discouraged workers, and 79 million who would like to work but have obligations, such as caregiving, that hinder them from taking up employment.

The study identifies potential for job growth in green energy and digital technologies.

The report makes several recommendations to address current challenges, including boosting productivity by investing in skills training, education, and infrastructure to support economic growth and job creation, as well as expanding social protection by providing better access to social security and safe working conditions to reduce inequality.

It also stresses the importance of using private funds effectively, suggesting that low-income countries can harness remittances and diaspora funds to support local development.