Steady global growth in 2024 amidst challenges, but rising social inequalities raise concerns, says ILO Report
Despite facing challenges, the global economy experienced steady growth in 2024. Joblessness and the jobs gap have both declined below pre-pandemic levels, reflecting the resilience of labor markets. However, the International Labour Organization's (ILO) "World Employment and Social Outlook: Trends 2024" report highlights concerns over rising social inequalities and stagnant productivity. While economic conditions have deteriorated, labor markets have shown surprising resilience. Nevertheless, the recovery from the pandemic is uneven, and new vulnerabilities and multiple crises are undermining prospects for achieving greater social justice, according to the ILO report. The report, "World Employment and Social Outlook Trends: 2024" (WESO Trends), reveals that Africa's GDP growth is estimated to have reached 3.8 percent in 2022, following the disruptions caused by the pandemic in 2020 and 2021. However, growth slowed to 3.1 percent in 2023 due to various factors, including the conflict in Ukraine and its impact on commodity markets.
A rebound to 3.8 percent growth is expected in 2024, driven in part by higher commodity prices benefiting exporters. However, there are downside risks, such as inflationary pressure, ongoing fluctuations in commodity prices, and tensions in the Middle East. In North Africa, growth was lower at 2.7 percent in 2023 due to external shocks like drought and flooding. Recovery is projected at 3.5 percent in 2024 and 4.4 percent in 2025, although growth rates vary across the subregion.
Sub-saharan Africa's labor force has experienced significant growth, with an additional 53 million working-age individuals in 2023 compared to 2019. This labor force is expected to increase by another 14 million people in 2024.
The average unemployment rate in 2023 was 5.8 percent, slightly lower than the 5.9 percent in 2019, totaling 27 million people. However, youth unemployment remains higher at 8.9 percent, representing 9.4 million individuals, which puts them at risk of disillusionment and labor market detachment.
While job creation has kept pace with the expanding labor force, not all employment opportunities are decent and productive. Informal employment continues to dominate in Africa, accounting for 86.5 percent, underscoring the urgent need to improve job quality and reduce working poverty. In 2022, approximately 60 percent of employed individuals were living in households below the international poverty threshold of US$3.65 per person per day in purchasing power parity terms, categorized as "moderately poor." This percentage has decreased from 63.8 percent in 2013.