As economies gradually bounce back from the shocks of the COVID-19 pandemic, the International Labour Organization (ILO) has highlighted a concerning disparity in the employment landscape.
According to the latest report released by ILO on Wednesday, low-income countries in Africa and West Asia are being left out of the global unemployment recovery.
While global unemployment rates are projected to decline this year, the recovery is predominantly taking place in high-income countries, leaving many low-income nations grappling with persistently high rates of joblessness.
According to the report, global unemployment is expected to drop to 5.3 percent in 2023, representing approximately 191 million people. This marks a decline from 5.4 percent in 2022 and 5.5 percent in 2019.
However, the ILO emphasizes that most of this recovery will occur in high-income countries with surprising resilience to economic shocks.
On the other hand, low-income countries in Africa and West Asia continue to face an uphill battle, with unemployment rates projected to remain above pre-pandemic levels.
The report cited by Reuters reveals that North Africa is expected to experience an unemployment rate of 11.2 percent in 2023, while Arab states will see a rate of 9.3 percent.
The Growing Unemployment Disparity
Highlighting the severity of the employment crisis, the ILO estimates a global jobs gap of 11.7 percent in 2023, translating to around 453 million people worldwide who desire employment but lack access to suitable opportunities. Low-income countries face an even greater challenge, with a jobs gap of 21.5 percent compared to 8.2 percent in high-income nations.
The ILO identifies various factors exacerbating this divide, including the persistent effects of the pandemic and ongoing conflicts in Ukraine and Syria. These crises have resulted in high inflation rates, soaring interest rates, and currency depreciation, which hinder job creation and economic growth.
Another significant obstacle faced by low-income countries is the burden of debt.
The ILO points out that interest rates remain above 10 percent in 37 countries, increasing borrowing costs and making it more difficult to repay debts. Disturbingly, approximately 60 percent of countries now find themselves in “debt distress or at high risk of debt distress,” according to data from the International Monetary Fund (IMF).
As the world economy faces a projected growth of only 2.8 percent in 2023, down from 3.4 percent in 2022, the ILO report serves as a stark reminder of the growing global inequalities that persist.
For all the latest business News Click Here
