ISLAMABAD: The outlook for global labour markets has worsened in recent months and current trends show job vacancies will decline and global employment growth will deteriorate significantly in the final quarter of 2022, warned a new report released by the International Labour Organisation (ILO) on Monday.
Unemployment and inequality both look set to rise because multiple and overlapping economic and political crises are threatening labour market recovery worldwide, according to the latest edition of the ILO Monitor on the World of Work.
Inflation is expected to remain high, which continues to hurt workers’ purchasing power and businesses, especially small enterprises. The monitor notes that rising inflation is causing real wages to fall in many countries. This comes on top of significant declines in income during the Covid-19 crisis, which in many countries affected low-income groups badly.
The report finds that worsening labour market conditions are affecting both employment creation and the quality of jobs and points out that there is already a data suggesting a sharp labour market slowdown. Labour market inequalities are likely to increase, contributing to a continue divergence between developed and developing economies, it says.
There are already signs of a turning point, particularly in job vacancies. The unprecedented growth in job vacancies during the 2021 recovery led to a significant increase in labour market tightness in advanced economies. Labour supply factors, such as reduced participation due to health effects, shifts in workers’ preferences, and migration trends, strongly contributed to increasing tightness, a trend which continued until spring 2022, the report notes.
Published in Dawn, November 1st, 2022