Daily Current Affairs : 15-January-2024
The International Labour Organisation (ILO) recently unveiled its World Employment and Social Outlook: Trends 2024 report, shedding light on the anticipated rise in global unemployment in the coming year. This report holds particular significance in the context of the Indian economy, falling under the purview of GS III.
ILO Overview:
- Establishment: The ILO, founded in 1919 after World War I, strives to promote peace through social justice.
- UN Specialized Agency: It became a specialized agency of the United Nations in 1946, emphasizing its commitment to global social and economic well-being.
- Tripartite Structure: Uniquely, the ILO operates with a tripartite structure, involving representatives from governments, employers, and workers in its executive bodies.
- Membership: With India as a founding member, the ILO boasts 187 member states.
- Leadership Role: India assumed the Chairmanship of the Governing Body in 2020, underscoring its leadership in international labor matters.
- Headquarters: The ILO’s headquarters are situated in Geneva, Switzerland.
- Awards and Recognition: Recognized with the Nobel Peace Prize in 1969, the ILO continues to garner acclaim for its efforts in fostering peace and justice.
Key Highlights of ILO’s Trends 2024 Report:
- Resilient Labor Markets: Despite economic challenges, global labor markets exhibit resilience, marked by improvements in unemployment and jobs gap rates.
- Global Unemployment Rate: After a slight improvement in 2023, a projected increase in 2024 raises the global unemployment rate to 5.2%, with an additional two million job seekers.
- Uneven Recovery: Pandemic recovery varies, revealing disparities between higher and lower income countries in unemployment rates and jobs gap rates.
- Income Inequality and Disposable Income: Widening income gaps and declining disposable incomes in most G20 nations impact aggregate demand adversely.
- Working Poverty: Despite a post-2020 decline, working poverty, especially in informal sectors, remains a persistent challenge.
- Informal Work and Labor Market Participation: Stable informal work rates persist, constituting about 58% of the global workforce in 2024, with varying returns to pre-pandemic labor market participation rates and persistent gender gaps.
- Labor Productivity: Post-pandemic productivity boost is short-lived, with a return to low pre-pandemic levels and slowing growth despite technological advances.
- Structural Challenges: Imbalances pose threats to livelihoods and businesses, including falling living standards, weak productivity, persistent inflation, and increased inequality.
- Global Wage Trends: Real wages in India and Turkey exhibit positive trends, contrasting with declines in other G20 countries, particularly pronounced in Brazil, Italy, and Indonesia.
Important Points:
ILO Overview:
- Established in 1919 post-World War I to promote peace through social justice.
- Became a specialized agency of the United Nations in 1946.
- Operates with a unique tripartite structure involving representatives from governments, employers, and workers.
- India, a founding member, assumed the Chairmanship of the Governing Body in 2020.
- Headquarters located in Geneva, Switzerland.
- Awarded the Nobel Peace Prize in 1969 for efforts in improving fraternity and peace among nations.
Key Highlights of ILO’s Trends 2024 Report:
- Resilient Labor Markets:
- Global labor markets show resilience despite economic challenges.
- Improvements noted in both unemployment rate and jobs gap rate.
- Global Unemployment Rate:
- In 2023, the global unemployment rate is 5.1%, a slight improvement from 2022.
- Projected increase in 2024, with an additional two million job seekers, pushing the rate to 5.2%.
- Uneven Recovery:
- Pandemic recovery varies, exposing vulnerabilities and crises.
- Disparities persist between higher and lower income countries in unemployment rates and jobs gap rates.
- Income Inequality and Disposable Income:
- Widening income inequality observed globally.
- Decline in disposable incomes in the majority of G20 nations impacting aggregate demand.
- Working Poverty:
- Despite a quick decline after 2020, workers in extreme poverty increased by about 1 million in 2023.
- Working poverty, especially in informal work, remains a persistent challenge.
- Informal Work and Labor Market Participation:
- Informal work rates expected to remain stable, constituting around 58% of the global workforce in 2024.
- Varied return to pre-pandemic labor market participation rates, with persistent gender gaps and high youth unemployment rates.
- Labor Productivity:
- After a brief post-pandemic boost, labor productivity returns to low pre-pandemic levels.
- Slowing productivity growth despite technological advances and increased investment.
- Structural Challenges:
- Imbalances observed may be structural, posing threats to livelihoods and businesses.
- Challenges include falling living standards, weak productivity, persistent inflation, and increased inequality.
- Global Wage Trends:
- Real wages in India and Turkey show positive trends relative to other G20 countries.
- Other G20 nations experience declines, particularly pronounced in Brazil, Italy, and Indonesia.
Why In News
The International Labour Organisation (ILO) presents the World Employment and Social Outlook: Trends 2024 report, signaling a projected rise in the global unemployment rate in 2024. Growing inequalities and stagnant productivity emerge as significant concerns, underscoring the urgent need for coordinated international efforts to address these challenges and foster inclusive and sustainable economic growth.
MCQs about Global Employment Trends 2024
-
Which region experiences the most significant decline in real wages among G20 nations, according to the Trends 2024 Report?
A. India
B. Brazil
C. Turkey
D. Italy
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What percentage of the global workforce is expected to engage in informal work in 2024, based on the ILO’s projections?
A. 50%
B. 58%
C. 65%
D. 45%
-
In which year did the International Labour Organisation (ILO) become a specialized agency of the United Nations?
A. 1919
B. 1946
C. 1969
D. 2020
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