Newsblare

Top 50            Stocks to Buy

Advisor Network Business Careers Economic & Finance Market Overview

UN labour body: Global job market unlikely to recover

UN labour body: Global job market unlikely to recover

The global job market is unlikely to recover before 2023. The global employment rate will take time to recover to pre-pandemic levels. The International Labour Organisation (ILO) warned that economies across the globe would suffer an equivalent of fifty-two million fewer jobs. 

Why will the global job market take longer to recover?

Compared to 186 million people out of work in 2019, there are 207 million people expected to be out of work in 2022. 

However, despite a shortage in the global job market, the unemployment rate is predicted to reach 5.9% in 2022. Compared to 5.4% in 2019 and 6.6% in 2020, the uncertainty of the pandemic leaves the global job market unlikely to recover. 

Nevertheless, in May, the ILO had predicted and warned the global job market there would be 205 million people out of work. 

The deficit in hours due to people being out of work equals 26 million full-time jobs. 

Guy Ryder, ILO Director-General, said, “We are already seeing potentially lasting damage to labour markets, along with concerning increases in poverty and inequality.” He also said the global labour market faced a “slow and uncertain” path to recovery. 

The Omicron variant severely affects the global job market, infecting people and hindering economic recovery. 

Furthermore, the ILO said in its world employment outlook report, “The impact has been particularly serious for developing nations that experienced higher levels of inequality, more divergent working conditions and weaker social protection systems even before the pandemic.”

Omicron and economies suffering as the global job market is unlikely to recover

While the Pacific and European regions might recover, the labour market in Latin America, Southeast Asia, and the Caribbean face colossal downside risks. 

The ILO also pointed out, “Moreover, the pandemic is structurally altering labour markets in such ways that a return to pre-crisis baselines may well be insufficient to make up for the damage caused by the pandemic.” 

Millions of economies are suffering at the hands of the Omicron variant of Covid-19. 

However, as economies suffer global unemployment, women’s unemployment is high. The ILO report also predicted the colossal impact of the pandemic on women’s employment. 

They also said the women’s employment would slim in the years to come with a “sizeable gap.” 

Guy Ryder also said, “There are some anecdotal indications that they are not coming back in the same numbers and in the same portions as men are doing which could lead to concerns that a ‘Long COVID’ effect on gender at work would be a negative one.” 

Nevertheless, the Covid variants such as the Omicron and Delta remain the prime cause for the global job market unlikely to recover. 

Lastly,

The labour market recovery will remain fragile through 2023. Guy Ryder says the ILO expects no change in the unemployment rate for “as long as the pandemic itself remains uncontrolled.” The economic and social behavioural changes followed due to the pandemic reduced the demand and supply of labour. 

Also Read – Market stands weak as 2,273 stocks declined on the BSE

Johannah is a passionate traveler. She is seeking remote places across India and exploring the benefits of being a Nomad. She has completed her bachelor's in Psychology Hons and diploma in Graphology. Being able to write helps her to share her experiences and be independent to travel anywhere.

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *