The latest ILO report indicates that the outlook for the world’s labour markets has gotten worse lately, and that, based on current trends, job openings will decline and global employment growth will get significantly worse in the fourth quarter of 2022.
According to the most recent edition of the International Labour Organization Monitor on the World of Work, multiple economic and political crises are endangering the recovery of labour markets around the world, which will lead to increased unemployment and inequality.
The report stated, “Rising inflation is causing real wages to fall in many countries. This comes on top of significant declines in income during the COVID-19 crisis, which in many countries affected low-income groups most.”
The 10th edition of the ILO Monitor on the World of Work states that as labour market conditions deteriorate, both the quantity and quality of jobs are affected. It also points out that data already exist that point to a sharp labour market slowdown.
It was noted that the gap between developed and developing economies would probably widen due to rising labour market disparities.
According to the report, “A set of multiple and overlapping crises, compounded by the Ukraine war and subsequent negative spillover effects, have materialised over 2022, which are deeply impacting the world of work.
“The effects are being felt through food and energy inflation, declining real wages, growing inequality, shrinking policy options and higher debt in developing countries. A slowdown in economic growth and aggregate demand will also reduce demand for workers as uncertainty and worsening expectations affect hiring.”
“Tackling this deeply worrying global employment situation and preventing a significant global labor market downturn will require comprehensive, integrated, and balanced policies both nationally and globally,” said ILO Director-General Gilbert Houngbo.