GENEVA
Global unemployment remains near a historical low of 5%, but significant challenges are slowing the full recovery of labor markets, according to the latest report of the International Labor Organization (ILO) released Thursday.
While the unemployment rate stabilized in 2024, the ILO highlighted widening inequalities, high youth unemployment, and the lasting impacts of inflation as barriers to achieving decent work for all.
The global unemployment rate of 5% reflected a steady recovery from the COVID-19 pandemic, but underlying challenges persist, the report found.
Informal work and working poverty have returned to pre-pandemic levels, particularly in low-income countries, where creating decent jobs remains difficult, it said.
The global jobs gap – a broader measure of labor market demand – stood at 402 million people in 2024, it said. This includes 186 million unemployed, 137 million temporarily unavailable for work, and 79 million discouraged job seekers.
While the gap has narrowed since the pandemic, it is expected to stabilize over the next two years, reflecting a plateau in recovery, it added.
Youth unemployment remains a significant challenge, it said, with the global NEET (not in education, employment, or training) rate rising in 2024. Some 85.8 million young men (13.1%) and 173.3 million young women (28.2%) were classified as NEET.
In low-income countries, young men accounted for 20.4% of the NEET population, while young women made up 37%.
According to the report, this trend left millions of young people, especially in low-income nations, vulnerable to economic instability and long-term setbacks.
Global economic growth decelerated to 3.2% in 2024, down from 3.3% in 2023 and 3.6% in 2022. These difficulties include geopolitical tensions, climate change costs, and unresolved debt issues.
Inflation has eased in some regions but remains elevated, it said, eroding wages and slowing real income growth. The report noted that only some advanced economies have experienced real wage increases, leaving most countries struggling to recover from inflationary pressures.
Despite these challenges, the ILO report highlighted opportunities in renewable energy and digital technologies. Renewable energy jobs grew to 16.2 million globally, driven by investments in solar and hydrogen power, although nearly half of these jobs are concentrated in East Asia.
Digital technologies also hold potential for job creation, but many nations face barriers such as inadequate infrastructure and skill shortages, limiting the benefits of these advancements.
ILO Director-General Gilbert Houngbo also called for urgent measures to address labor market vulnerabilities.
“Decent work and productive employment are essential for achieving social justice and the Sustainable Development Goals. To avoid exacerbating already strained social cohesion, escalating climate impacts, and surging debt, we must act now to tackle labour market challenges and create a fairer, more sustainable future,” Houngbo said.
The report also recommended boosting productivity through investments in education and skills training, expanding social protection to reduce inequality, and leveraging private funds like remittances to support development in low-income countries.
