As the world economy recovers from the percussions of the COVID-19 pandemic, the International Labour Organisation (ILO) expects global unemployment in 2023 to fall below pre-pandemic levels at a projected rate of 5.3 per cent, equivalent to 191 million people. However, recent ILO data also reveals a sharp divide between high-income countries, where unemployment is at 8.2 per cent, and low-income countries, where one in five people is without a job.
The 2023 global jobs gap, which refers to those who want to work but do not have a job, is expected to rise to 453 million, the ILO said, with women 1.5 times more affected than men.
The UN agency indicates that low-income countries, and countries in debt distress, especially those in Africa and the Arab region, were unlikely to see a decline in unemployment this year.
Africa’s labour market had been hit the hardest during the pandemic, which explained the slow pace of recovery on the continent, the ILO said.
Unlike wealthy nations, debt distress across the continent and a limited fiscal and policy space meant that few countries in Africa could put in place stimulus packages to spur economic recovery, the ILO added.
The ILO report explains how policy gaps in developing countries aggravate the consequences of multiple crises, referring to social protection as one key policy area that is constrained by the overall economic situation, limited fiscal space, and the associated lack of investment in such measures.
“At the same time, there is robust evidence that investing in social protection will bring about broader economic, employment, and social benefits. Progress has been slow in improving access to social protection,” the report said.
However, the report ends on a hopeful note, indicating that the unemployed divide projected by the report was worrisome but “not inevitable”, and that concerted action on jobs and social protection funding could support a recovery and reconstruction that leaves no one behind.
But the remaining question is: How can we help these countries reverse these projections? One answer would be debt relief programmes to maintain growth in these countries.
After restraints imposed by the Covid-19 pandemic, the war in Ukraine still has an alarming impact on the world economy, creating a perfect storm for food, energy, and finance, with particularly devastating impacts on developing economies.
Offering the proper aid is necessary for these countries to preserve development achievements built over decades and to get them back on track to recover and continue their journey to sustainable development.
It’s necessary to narrow the gaps between countries, which require a combination of approaches that take into account the specific circumstances and needs of each country. Collaboration, investment, and support from richer nations are necessary to create sustainable and equitable economic growth for all.
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