Global Courant
Low-income countries will not see unemployment rates return to pre-pandemic levels in 2023, the ILO says.
Low-income countries in Africa and the Middle East are missing out on the global recovery in unemployment rates to pre-pandemic levels, the United Nations Employment Office has warned.
According to a report by the International Labor Organization (ILO) released on Wednesday.
But much of that recovery will be in high-income countries that have proved surprisingly resilient to economic shocks, leaving many low-income countries with persistently high unemployment rates, the ILO said.
Unemployment in North Africa and the Arab states is expected to reach 11.2 percent and 9.3 percent respectively in 2023, remaining above pre-pandemic levels.
Latin America, the Caribbean, Europe and Central and Western Asia have all returned their unemployment rates to pre-crisis levels.
The widening employment gap is because the global economy is expected to grow by just 2.8 percent in 2023, up from 3.4 percent in 2022.
However, the figures do not fully reflect the unemployment crisis in low-income countries, according to the ILO, which said the “job gap” is even wider when people who want to work but do not have a job are taken into account. job or the possibility of getting one.
The ILO estimated that the global job gap will reach 11.7 percent by 2023 — representing about 453 million people — with low-income countries facing a 21.5 percent gap, compared to 8.2 percent in the high income countries.
The job center said the gap has been exacerbated by “mutually reinforcing crises”, including the lingering effects of the pandemic and the wars in Ukraine and Syria, which have led to high inflation, high interest rates and currency depreciation.
Interest rates remain above 10 percent in 37 countries, driving up the cost of borrowing and making it more difficult to pay off debts, which skyrocketed during the pandemic, the ILO said.
About 60 percent of countries are now in “debt distress or at high risk of becoming indebted,” according to IMF data.
ILO Director-General Gilbert F. Houngbo said these challenges demonstrate the need to develop social safety nets that can withstand macroeconomic shocks.
“The findings of this report are a stark reminder of growing global inequality,” Houngbo said. “Investing in people through jobs and social protection will help narrow the gap between rich and poor countries and people.”
