Global unemployment worsens, two million may be jobless

• Double jeopardy if Nigeria ignores enterprise sustainability, says NECA

GLOBAL unemployment and labour market outlook are expected to worsen this year with more than two million persons expected to be out of jobs.

A report released by the International Labour Organisation ( ILO), yesterday, ' ILO’S W orld Employment and Social Outlook T rends: 2024 ( WESO Trends)', said that both the unemplo yment rate and the jobs gap rate – which is the number of persons without employment but who are interested in finding a job – ha ve fallen below pre- pandemic levels. According to the report, in 2024, an extra two million workers are expected to be looking for jobs, raising the global unemployment rate from 5.1 per cent in 2023 to 5.2 per cent.

It stated that the 2023 global unemplo yment rate stood at 5.1 per cent, a modest improvement from 2022 when it stood at 5.3 per cent, while the global jobs gap and labour market participation rates also improved.

It stated that labour markets have shown surprising resilience despite deteriorating economic conditions, but recovery from the pandemic remained uneven as new vulnerabili - ties and multiple crises are eroding prospects for greater social justice.

The report stated that disposable incomes ha ve declined generally and the erosion of living standards resulting from inflation is “unlikely to be compensated quickly”.

Also, it said important differences persist between higher and lower- income countries.

It said while the jobs gap rate in 2023 was 8.2 per cent in high- income countries, it stood at 20.5 per cent in the low- income group. Similarly, while the 2023 unemployment rate persisted at 4.5 per cent in high- income countries, it was 5.7 per cent in lowincome countries. It added that working poverty is likely to persist.

Director- General of the Nigeria Employers' Consultative Association ( NECA), Adewale- Smatt Oyerinde, described the report as a current reality, which reflects the global economy.

He said it would be double jeopardy for Nigeria if the federal government does not take proactive steps to ensure enterprise sustainability, especially as many organisations are divesting due to unfavourable operating environments. "Despite quickly declining after 2020, the number of workers living in extreme poverty ( earning less than $ 2.15 per person per day in purchasing power parity terms) grew by about 1 million in 2023. The number of workers living in moderate poverty ( earning less than $ 3.65 per day per person in PPP terms) increased by 8.4 million in 2023," the report said.