ILO Monitor on the World of Work

News:

Global unemployment is predicted to return to pre-pandemic levels by 2023, as per the International Labour Organisation’s (ILO) latest report.

What:

• The ILO Monitor on the World of Work is a publication which provides an analysis of the state of labour markets and employment around the world.
• The recently released report is the 11th edition.

Highlights:

• Global unemployment is expected to return to pre-pandemic levels by 2023.
• Large emerging economies like India have bounced back with strong economic growth, but low-income countries are struggling due to high levels of debt and increasing borrowing costs.
• There is a widening gap between rich and poor nations, calling for investments in jobs and social protection to bridge this disparity.
• The ILO projects that the global unemployment rate will decrease by 0.1 percentage points in 2023, reducing the total number of globally unemployed people by one million due to unexpected labour market resilience in high-income countries.
• Further interest rate hikes in high-income countries are expected to be limited as central bankers prioritize economic health, while interest rates in many low- and middle-income countries are expected to remain stable or decline.
• However, there is a considerable risk of the global economy entering a recession, posing a significant downside risk to global labour markets.
• The report calls for global financial support for job creation and social protection during periods of multiple crises and shocks, including inflation and the Ukraine crisis.
• It suggests the extension of the social security net as a policy measure to handle crises and ensure recovery and reconstruction.
• The ILO plans to launch a Global Coalition for Social Justice, bringing together multiple multilateral bodies and stakeholders to make social justice a cornerstone of global recovery.
• Creating fiscal space for social investments in low-income countries is deemed crucial, requiring urgent global discussion on the reform of international financial architecture.
• Implementing a social protection floor for older persons could contribute to boosting economic growth, mainly through accelerating demographic transition and reducing countries’ reliance on agriculture.
• Studies have shown that old-age pensions lead to decreases in desired family size and, consequently, fertility rates.

Significance:

• The findings underline growing global inequalities and the need for investing in jobs and social protection to bridge the gap between rich and poor nations.

Who:

• The report was released by the International Labour Organisation (ILO).

Glossary

• Global Coalition for Social Justice: A proposed initiative by the ILO intended to gather a range of multilateral bodies and stakeholders to make social justice a priority in national, regional, and global policies and actions.
• Social Protection Floor: A set of basic social security guarantees that should ensure, as a minimum, that all in need have access to essential health care and basic income security.
• Demographic Transition: A shift from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

MCQ:

With reference to the ILO Monitor on the World of Work, consider the following statements:

1. The recently released report indicates that global unemployment is expected to worsen by 2023.
2. The report highlights that low- and middle-income countries are expected to see an increase in interest rates.
3. The ILO plans to launch a Global Coalition for Social Justice to make social justice a cornerstone of global recovery.
4. Implementing a social protection floor for older persons could contribute to slowing down demographic transition.

How many of the above statements are correct?

[A] Only one

[B] Only two

[C] Three

[D] All four

Answer: [B] Only two

Explanation: Statement 3 is correct, as per the text, the ILO plans to launch a Global Coalition for Social Justice to emphasize social justice in global recovery. Statement 1 is incorrect as the report predicts global unemployment to return to pre-pandemic levels by 2023. Statement 2 is incorrect as the report suggests that interest rates in many low- and middle-income countries are expected to remain stable or decline. Statement 4 is incorrect, the report suggests that implementing a social protection floor for older persons could contribute to boosting economic growth, mainly through accelerating demographic transition, not slowing it down.