Global Unemployment to Decline Slightly in 2024, UN Labor Agency projects

The global unemployment rate is expected to dip slightly to 4.9% in 2024, down from 5.0% in 2023, Reuters reported yesterday citing International Labour Organization (ILO).

The UN labor agency had previously forecast unemployment to rise to 5.2% this year, but revised its outlook due to lower-than-anticipated jobless rates in major economies like China, India, and high-income countries.

The downward trend for joblessness is expected to flatten in 2025, with unemployment remaining at 4.9%, the report said.

Overall, the global economy has proven more resilient than expected in early 2024, with growth picking up in the United States and inflation declining, providing some relief to household incomes.

The International Monetary Fund in April raised its 2024 forecasts for global growth to 3.2% from the 3.1% estimated in January, largely due to an improvement in the U.S. outlook.

However, the ILO warned that the labor market outlook remains uncertain in the medium term due to anticipated monetary and fiscal policy adjustments worldwide. Significant employment gaps also persist, especially for women in low-income countries.