In its latest follow-up on the World Employment Report, the ILO shows that while in high-income countries, only 8.2 per cent of people who want to work are unemployed, that number is higher over 21 per cent in low-income countries – or one in every five people.
It is a low-income country debt crisis is the worst affectedwith more than one in four people who want to work cannot secure a job.
Expansion of services
The Director-General of the ILO for Jobs and Social Protection, Mia Seppo, said that global unemployment is expected to fall below epidemic levels, with a projected rate of 5.3 per cent in 2023, equivalent to 191 million people.
However, low-income countries, especially those in Africa and the Arab region, are it is unlikely to see such reductions is unemployed this year.
The global jobs gap in 2023, which refers to those who want to work but do not have a job, is projected to rise to 453 million people, he said, including women 1.5 times more affected than men.
Africa was hit the hardest
The UN agency also pointed out that the African labor market has been hit the hardest during the pandemic, which it explains slow pace of recovery on the continent.
Unlike rich countries, debt problems across the continent and very limited fiscal and policy space mean that few countries in Africa can deliver the kind of comprehensive relief packages they need to revive the economy. , ILO explains.
Inadequate social protection
Ms. Seppo emphasized that without improvement in people’s job prospects, there will be there is no economic and social recovery. It is also important investing in social security networks for those who have lost their jobs, the ILO chief stressed, which is often inadequate in low-income countries.
According to the agency’s research, boosting social security and increasing old-age pensions would increase gross domestic product (GDP) per capita in low- and middle-income countries by nearly 15 percent over ten years.
Social investment opportunity
The annual cost of such measures would be around 1.6 per cent of GDP – a “big but not negligible” investment. Mrs. Seppo suggested that the amount could be financed by a combination of social grants, taxes and international support.
“There is an economic return to investing in social security”, he said.
Mrs. Seppo also emphasized that the need to create a financial space for social investment in less developed countries must be considered “with urgency as part of the ongoing international discussion on reform of international financial architecture.”
Prepare for the future of work
While the unemployment rate mentioned by the report is worrying, “it is not inevitable”, said Ms. Seppo, and the right action on jobs and social security funding can support the recovery and reconstruction which leaves no one behind. dropped
Perfect for improving the ability to develop “unified, data-driven labor market processes” that protect the most vulnerable, the senior ILO official stressed that these should have an emphasis on strengthening and adapting the workforce to prepare for “greener, more modern world of work“.
