Geographical and climatic crises are the reason for the slow economic recovery, report says

 Thursday, January 16, 2025

Islamabad (News International/ Pakistan Point News - 16th January, 2025) The International Labour Organization (ILO) has said that geopolitical tensions are increasing the cost of climate change measures and debt problems are putting pressure on the labor market.

The organization’s report titled ‘World Employment and Social Outlook: Trends to 2025’ said that the pace of recovery from the economic downturn caused by the Covid-19 pandemic is slowing. Last year, employment growth was in line with the growing labor force, and thus the unemployment rate remained at the level of 2023.

The number of unemployed youth continues to increase.

The number of informal workers and the working poor has returned to pre-pandemic levels, while low-income countries are facing more difficulties than others in creating decent jobs for their citizens.

Gender gap in employment

Low-income countries have seen a decline in their workforces, while high-income economies have seen an increase, particularly among older workers and women in the workforce.

However, the gender gap in employment remains high, and the lack of women in the workforce has limited the rate of improvement in living standards.

The number of young people in the workforce has also declined sharply, with many of them not in education, employment or vocational training (NEETs), leaving them vulnerable to economic hardship.

While this is particularly pronounced in low-income countries, the trend is similar for young women around the world.

Economic recovery challenges

The ILO says that few advanced economies have been able to increase wages, and most are still struggling to recover from the effects of the last crisis.

The global economy grew moderately last year, slowing in the latter part of the year.

This pace is expected to continue this year.

Although the inflation rate has decreased, the global economy has not yet been able to recover from the job losses caused by the pandemic. The report cites slow employment growth as a major reason for this.

402 million unemployed

Last year, the number of people who want to work but are unable to find work reached 402 million.

Of this, 186 million are completely unemployed, 137 million are temporarily available for work and 79 million have given up looking for work due to unemployment.

According to the report, although the growth rate of the workforce is slowing, it is likely to remain stable over the next two years.

New job opportunities

The ILO has said that employment is likely to increase in the sectors of green energy and digital technology.

Another 16.2 million jobs have been created in the renewable energy sector, with investments in solar and hydrogen playing a key role. However, these jobs are not equally accessible to everyone in the world, and almost half of these jobs are in East Asia.

Digital technology also brings opportunities, but the report says that many countries lack the necessary infrastructure and skills to reap the full benefits of this innovation.

Innovative approaches

The report recommends increasing productivity through measures such as skills training, expanding social protection and encouraging the use of private resources for local development in low-income countries.

ILO Director-General Gilbert Hongbo has stressed the need for urgent action to increase employment and wages, saying that decent and productive work is essential for achieving social justice and the Sustainable Development Goals (SDGs).

They say the world must take urgent steps to address labor market problems and build a more just and sustainable future while avoiding further undermining already fragile social cohesion, exacerbating climate change, and exacerbating the problem of rising debt.