Global employment growth and job vacancies will decline significantly in the final quarter (October-December) of 2022, according to a International Labour Organization (ILO) report.
Real wages are declining across several nations due to inflation. This comes on top of huge income decreases during the Covid-19 crisis, which disproportionately affected low-income groups, the report said.
Unemployment and inequality both look set to rise because multiple and overlapping economic and political crises are threatening labour market recovery worldwide, according to the 10th edition of ILO Monitor on the World of Work.
According to the Monitor, a set of multiple and overlapping crises, compounded by the Ukraine war and subsequent negative spillover effects, have materialized 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.
At the beginning of 2022, the number of global hours worked was recovering strongly, notably in higher-skilled occupations and among women. However, this was driven by an increase in informal jobs, jeopardizing the 15-year trend towards formalisation.
The situation worsened over the course of the year and in Q3 of 2022 ILO estimates are that the level of hours worked was 1.5 per cent below pre-pandemic levels, amounting to a deficit of 40 million full-time jobs.
“We need a strong commitment to initiatives such as the UN Global Accelerator on Jobs and Social Protection, which would create 400 million jobs and extend social protection to the four billion people who are currently unprotected," ILO Director-General Gilbert F Houngbo said.
“Tackling this deeply worrying global employment situation, and preventing a significant global labour market downturn, will require comprehensive, integrated and balanced policies both nationally and globally.”
“We need a strong commitment to initiatives such as the UN Global Accelerator on Jobs and Social Protection, which would help countries create 400 million jobs and extend social protection to the four billion people who are currently unprotected,” Houngbo added.
