Hit by Ukraine war, inflation, global jobs growth will halve in 2023: ILO

Global employment growth is expected to slow down sharply to 1% this year compared to 2% in 2022, hit by the economic fallout of the war in Ukraine, inflation and tighter monetary policy, the ILO said

Photo: Bloomberg
Reuters LONDON
2 min read Last Updated : Jan 16 2023 | 11:25 PM IST

LONDON (Reuters) - Global employment growth is expected to slow down sharply to 1% this year compared to 2% in 2022, hit by the economic fallout of the war in Ukraine, high inflation and tighter monetary policy, the International Labour Organization (ILO) said on Monday.

At the same time, the number of unemployed people in the world is expected to rise by 3 million to 208 million in 2023, while inflation will eat into real wages, the ILO said in a report on global trends.

The scarcity of new jobs will hit countries at a time when many are still recovering from the economic shock of the global pandemic and the coronavirus is tearing through China after Beijing lifted tight lockdown restrictions.

"The slowdown in global employment growth means that we don't expect the losses incurred during the COVID-19 crisis to be recovered before 2025," said Richard Samans, Director of the ILO's Research Department and coordinator of its newly published report.

Progress in reducing the number of informal jobs in the world is also likely to be reversed in the coming years, the ILO said.

The global jobs forecast is lower than the previous ILO estimate of 1.5% growth for 2023.

"The current slowdown means that many workers will have to accept lower quality jobs, often at very low pay, sometimes with insufficient hours," ILO said. "Furthermore, as prices rise faster than nominal labour incomes, the cost-of-living crisis risks pushing more people into poverty."

The situation could worsen further if the global economy slows down, ILO added.

 

(Reporting by Matthias Williams in London and Gabrielle Tetrault-Farber in Geneva; Editing by Toby Chopra)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Smart Quarterly

₹900

3 Months

₹300/Months/month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Months/month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Unlimited access to all articles

  • 30+ premium stories daily, handpicked by our editor

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio

  • Wirecutter & The Athletic

Complimentary Access to Our e-Paper

  • Digital replica of our daily newspaper

  • Read, save, share any article

Curated Newsletters on Diverse Topics

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Smart Investment Tips

  • In-depth stock analysis & insights

  • The Smart Investor for wealth growth tips

Access to Extensive Historical Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading Experience

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Repository of articles and publications dating back to 1997

More From This Section

Topics :InflationILOUkraine

Gold price in Delhi today is ₹ 84,470, Click Here for other cities. Silver price in Delhi today is ₹ 84,470, Click Here for other cities.

First Published: Jan 16 2023 | 2:50 PM IST

Subscribe to read without limits
Subscribe Now
Next Story