In 2023, the economic slowdown causes trouble for the labourers. The current economic situation forces them to accept socially low-profile jobs with lower wages. As a result, the UN’s International Labour Organization said that unemployment worldwide is set to rise.
“The Russia-Ukraine war, the ongoing covid surge in some parts of the globe, the slow recovery from the pandemic, and geopolitical tensions are reasons for job instability worldwide,” said ILO
“Together, these have created the conditions for stagflation — simultaneously high inflation and low growth — for the first time since the 1970s,” the agency said in its annual World Employment and Social Outlook report.
ILO director-general Gilbert Houngbo said the recovery from the Covid-19 pandemic was particularly patchy in low- and middle-income countries and was further hampered by climate change and humanitarian challenges.
“Projections of a slowdown in economic and employment growth in 2023 imply that most countries will fall short of a full recovery to pre-pandemic levels in the foreseeable future,” the former prime minister of Togo said in the report.
Over 200 million people are expected to be jobless this year, with an unemployment rate of 5.8%. In 2022, the unemployment projection was at 205 million. However, the ILO says the economic slowdown results have been absorbed by “rapidly falling real wages” due to accelerating inflation rather than job losses.
“The current slowdown means that many workers will have to accept lower quality jobs, often at meagre pay, sometimes with insufficient hours,” the ILO said.
In addition to this, the report said the extended economic slowdown in advanced countries had an impact on major emerging economies — “a matter of deep concern” since productivity growth could counter concurrent crises in purchasing power and ecological sustainability.
- Published By Team Timeswire