Economic Slowdown Threatens Job Security and Living Standards Worldwide in 2024

As we move into the beginning of 2024, experts believe that economic factors including high interest rates and the tightening of labor markets could impact global employment rates and job security this year.  

The United Nations published data from the International Labour Organization’s (ILO) “World Employment and Social Outlook Trends 2024” report, which revealed that as of 2024 approximately 5% of the global workforce is unemployed — a slight improvement from the pre-pandemic era. However, this trend is not expected to last, with an estimated two million additional people projected to join the job hunt over the next year.  

According to the UN’s article, this labor market forecast aligns with a recent World Bank’s report suggesting a potential slowdown in global economic growth, estimated to be the slowest in three decades. 

One of the most pressing issues reported by the ILO is “the erosion of living standards” in many of the world’s wealthiest nations — primarily due to inflation. Although inflation rates are declining in several major economies, the impact on living standards is expected to persist and contribute to greater inequality that undermines efforts made towards social justice. This situation is particularly dire in lower-income countries, where the unemployment rate is significantly higher compared to wealthier nations. 

The report also sheds light on the disparities in the recovery from the COVID-19 pandemic. While women’s participation in the job market has rebounded, a notable gender gap remains — especially in emerging and developing countries. Additionally, the UN reports that youth unemployment continues to be an ongoing challenge. 

Another notable data point is the persistence of the “informal” economy, with around 58% of the global workforce expected to remain in informal employment in 2024. This trend points to a lack of progress in addressing the challenges faced by those employed in what the UN calls “the underground economy,” which includes a large portion of people who often lack social protections and job security. 

The ILO’s findings suggest that the future of work is likely to be characterized by increased inequality, persistent challenges in formalizing employment, and the need for more robust policies to improve living standards and promote social justice. These figures reveal how urgent and effective action should be taken to address workforce challenges globally.