The International Labor Organization points to “a shift in power in the labor market from workers to employers, with particularly harmful effects for vulnerable groups and young people.”
AFP
Youth labor force participation is declining globally, especially in low-income countries, according to the International Labor Organization’s (ILO) annual report on employment and social issues released Thursday.
“Among young men, the activity rate has fallen sharply, and many are not in education, employment or training (NEET),” notes the report, which emphasizes that “this trend is particularly pronounced in low-income countries. In these countries, “NEET rates for young men have increased by almost 4 percentage points compared to the historical average before the pandemic, making them vulnerable to economic challenges,” continues the ILO.
Still in low-income countries, the participation of young men in the labor market remains much higher than that of young women, with more than one young man in five who is neither in employment nor in training, compared to 37% of young women.
A high unemployment rate among young people
Overall, in 2024, employment grew at the same rate as the active population, allowing the global unemployment rate to remain at 5%, “a level similar to that of 2023”, according to the report. The youth unemployment rate, however, is much higher, at 12.6%.
In addition, informal work “and working poverty (have) returned to their pre-pandemic levels,” deplores the Geneva-based organization. “The most vulnerable have not seen significant improvements in their employment conditions for around ten years,” Gilbert Houngbo, the director general of the ILO, told the press.
“Despite some good news”, he deplored “the glaring lack of decent work, with insufficient job creation, low salaries and low quality jobs”.
“The most vulnerable have not seen significant improvements in their employment conditions for around ten years”
If so far, “central banks have succeeded in bringing down inflation without causing a sharp recession in labor markets”, “further tightening, in particular on the part of fiscal authorities, would risk causing serious social disruption,” warns the ILO in its report.
In addition, “although inflation rates have fallen, wage growth has not fully made up for the loss of income linked to the pandemic,” notes the organization, which also points to “a transfer of power to the market of labor from workers to employers, with particularly harmful effects for vulnerable groups and young people.
To improve the lot of workers, the ILO proposes investing in vocational training, education and infrastructure, developing social protection and for low-income countries, “exploiting remittances and funds of the diaspora to support local development.
(afp/er)
