The report states that the COVID-19 pandemic and the resulting economic crisis have had a significant impact on the global labor market, leading to increased unemployment and reduced job security for many workers. It is predicted that the economic slowdown in 2023 will continue to affect the labor market, with workers facing increased competition for jobs and reduced wages. In addition, many workers will be forced to accept jobs with low pay, and sometimes insufficient hours.
The disproportionate impact of the economic crisis on certain groups, such as women and young workers, is highlighted in the report. Women are said to have been particularly affected by the crisis, with many losing their jobs in sectors such as retail and hospitality that have been hit hard by the pandemic. Young workers have also been affected, with many facing reduced job opportunities.
In addition, the economic slowdown is likely to lead to increased inequality, as workers with lower levels of education and skills are likely to be hit the hardest. The report states that “this will exacerbate existing inequalities and further marginalize certain groups in the labor market.”
The global jobs gap metric is introduces in the report, a metric that takes into account not just unemployed individuals but also those who desire employment yet are not actively seeking it due to discouragement or separate responsibilities. The global jobs gap stood at 473 million in 2022, around 33 million above the level of 2019.
The economic slowdown in 2023 also is likely to have a long-term impact on the labor market, with many workers facing reduced job opportunities and reduced wages for years to come. Richard Samans, director of the ILO Research Department, says that the slowdown in global employment growth means that losses incurred during the pandemic are not expected to be recovered before 2025.
“The slowdown in productivity growth is also a significant concern, as productivity is essential for addressing the interlinked crisis we face in purchasing power, ecological sustainability, and human well-being,” said Richard Samans.
The ILO report concludes by calling on governments to take action to support workers and mitigate the impacts of the economic crisis. This includes providing targeted assistance to those most affected by the crisis, such as women and young workers, as well as investing in education and training to help workers adapt to the changing labor market.
There are significant variations in regional 2023 labor market prospects identified in the report. In 2023, Africa and the Arab states should see employment growth of around 3 percent or more, but unemployment rates are expected to decline only modestly. In Asia and the Pacific, and Latin America and the Caribbean, annual employment growth is projected to be around 1 percent. northern America will see few or no employment gains and an increase in unemployment. Europe and Central Asia, particularly hard hit by the economic fallout from the Russia–Ukraine war, are projected to see a decline in employment, but a slight increase in unemployment due to limited growth in the working-age population.
ILO Director-General Gilbert F. Houngbo says the need for more decent work and social justice is clear and urgent.
“But if we are to meet these multiple challenges, we must work together to create a new global social contract. The ILO will be campaigning for a Global Coalition for Social Justice to build support, create the policies needed, and prepare us for the future of work.”
