FE REPORT
The global economy is slowing down, making it harder for labour markets to recover fully, according to the latest ILO report.
In 2024, global employment was flat, rising only because of growth in the labour force, so keeping the unemployment rate steady at 5.0 per cent, the report said.
The report titled 'World Employment and Social Outlook 2025' published on Thursday, however, revealed that youth unemployment witnessed little improvement, remaining high at 12.6 per cent.
Informal work and working poverty returned to pre-pandemic levels, with low-income countries facing the most difficulties in creating decent jobs, it noted.
Pointing out the challenges for recovery, the report said geopolitical tensions, rising costs of climate change and unresolved debt issues are putting labour markets under pressure.
Although inflation has decreased, it remains high, reducing the value of wages, the report finds.
"Real wages have only increased in some advanced economies and most countries are still recovering from the effects of the pandemic and inflation."
Labour force participation rates have dropped in low-income countries while increasing in high-income nations, mainly among older workers and women, the report finds.
However, gender gaps remain wide with fewer women in the workforce, limiting progress in living standards.
Among young men, participation has fallen sharply, with many not in education, employment or training (NEET).
This trend is especially pronounced in low-income countries, where NEET rates for young men have risen by nearly 4 percentage points above the pre-pandemic historical average, leaving them vulnerable to economic challenges, according to the report.
NEET rates in low-income countries rose in 2024, with young men reaching 15.8 million (20.4 per cent) and young women 28.2 million (37.0 per cent), marking increases of 500,000 and 700,000 respectively from 2023.
Globally, 85.8 million young men (13.1 per cent) and 173.3 million young women (28.2 per cent) were NEET in 2024, up by 1.0 million and 1.8 million respectively from the previous year.
Alarmingly, the NEET rate stands at 30.9 per cent, with 11.1 per cent for males and 49.3 per cent for females in Bangladesh, a statement issued by ILO Bangladesh country office said in a statement issued on Thursday.
Considering these challenges, ILO Bangladesh Country Director Tuomo Poutiainen stressed the importance of prioritising skills development and employability of youth and establishing effective labour market governance mechanisms aligned with international standards to promote employment and decent work.
"To achieve inclusive and sustained economic growth, as well as its ambition of becoming a middle-income country, Bangladesh must prioritise active labour market policies and the creation of decent employment opportunities in particular for youth, women and marginalised groups," the statement quoted Mr Poutiainen.
Nearly half of Bangladesh's working-age population remains outside the labour force, highlighting a significant underutilisation of its demographic potential.
Citing ILOSTAT (2022) data, it added the labour force participation rate is 49.5 per cent, with stark gender disparities-78.5 per cent for males and only 21.25 per cent for females.
High youth vulnerability, especially among women, along with the prevalence of low-productivity, informality of jobs including in agriculture, continues to undermine economic progress and social justice, it said.
The global jobs gap - the estimated number of people who want to work but do not have a job - reached 402 million in 2024. This includes 186 million unemployed people, another 137 million who are mainly discouraged workers, and 79 million who would like to work but who have obligations, such as care, that hinder them from taking up employment.
The study identifies potential for job growth in green energy and digital technologies.
The report makes some recommendations to address current challenges including boosting productivity by investing in skills training, education and infrastructure to support economic growth and job creation and expanding social protection by providing better access to social security and safe working conditions to reduce inequality.
It also stressed using private funds effectively saying low-income countries can harness remittances and diaspora funds to support development.
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