PRELIMS BITS
The International Labour Organisation (ILO) has released its 2025 report, shedding light on persistent global labour market challenges. Geopolitical tensions, climate change costs, and unresolved debt continue to hinder economic recovery, despite slight improvements in employment gaps.
Global Jobs Gap:
- Total Gap (2024): 402 million, including 186 million unemployed, 137 million temporarily unavailable, and 79 million discouraged workers.
- The gap has narrowed since the pandemic but is stabilising.
Unemployment and Participation:
- Global Unemployment Rate: Steady at 5% in 2024.
- Youth Unemployment: High at 12.6%, especially in low-income countries.
- Labour force participation is declining in low-income nations but increasing in high-income countries, notably among women and older workers.
NEET Concerns:
- Rising NEET (not in education, employment, or training) rates, especially in low-income countries.
- In 2024, NEET rates affected 15.8 million young men and 28.2 million young women.
Economic Growth and Wages:
- Economic Growth: Slowed to 3.2% in 2024, with similar rates expected for 2025.
- Inflation and Wages: High inflation continues to limit real wage growth, with many countries still recovering.
Emerging Opportunities:
- Green and Digital Sectors: Renewable energy jobs reached 16.2 million globally, but growth remains uneven. Digital advancements also show promise, though infrastructure gaps hinder progress.
ILO Recommendations:
- Enhance productivity through skills training.
- Expand social protection systems.
- Encourage effective use of private funds and remittances for local development.
The report underscores the need for collaborative action to address inequalities and unlock the potential of emerging sectors for a sustainable economic future.