in its new Monitoring on the World of Work report, ILO shows that while in high-income countries only 8.2 percent of those willing to work are out of work, that number is rising. more than 21% in low-income countries – or one out of every five.
Low-income countries in The debt crisis was hit the hardestwith more than a quarter of those who want to work unable to secure a job.
Widening the employment gap
The ILO’s Assistant Director-General for Employment and Social Protection, Mia Seppo, said the global unemployment rate is expected to fall below pre-pandemic levels, with an expected rate of 5. .3% in 2023, equivalent to 191 million people.
However, low-income countries, especially in Africa and the Arab region, have Hard to see such a decline unemployed this year.
She said the 2023 global employment gap, which refers to people who want to work but do not have a job, is projected to grow to 453 million people. women are affected 1.5 times more than men.
Africa is the hardest hit
The UN agency further pointed out that Africa’s labor market has been hit the hardest during the pandemic, which explains slow recovery rate on the continent.
Unlike wealthy nations, the ILO explains, debt piles up across the continent and very limited fiscal and policy space, meaning very few countries in Africa can offer comprehensive stimulus packages they need to spur economic recovery.
Inadequate social protection
Ms. Seppo emphasized that without improving people’s job prospects, there will be there is no healthy social and economic recovery. Equally important is invest in the welfare safety net For those who lost their jobs, the senior ILO official emphasized, this is often inadequate in low-income countries.
Strengthening social protection and expanding pensions for the elderly would increase gross domestic product (GDP) per capita in low- and middle-income countries by nearly half, according to the agency’s research, according to the agency’s research. 15% in a decade.
Benefits of social investment
The annual cost of such measures would be around 1.6% of GDP – a “large but insurmountable” investment. Ms. Seppo suggested that the money could be funded by a combination of social contributions, taxes and international support.
“There is an economic benefit to investing in social protection,” she said.
Seppo also stressed that the need to create financial space for social investment in low-income countries should be considered “urgently as part of the ongoing global discussion on reform of the international financial structure.”
Prepare for the future of work
Ms Seppo said that while the unemployment split forecast in the report is worrying, it is “inevitable”, and proper coordinated action on employment and social protection funds is needed. can support recovery and reconstruction without leaving anyone behind.
Calling for capacity building for development “coherent, data-driven labor market policy” protecting the most vulnerable, the senior ILO official stressed that these should focus on upskilling and retraining the workforce to prepare for “greener, more digital world of work“.
