[Asia Economy Reporter Hyunwoo Lee] The International Labour Organization (ILO) has revealed that the global unemployment rate, which had been on a declining trend since the 2008 global financial crisis until last year, is likely to rise again starting this year. While the economic recovery centered around the United States had lowered unemployment rates until last year, concerns over a global economic slowdown and manufacturing sector downturn are expected to cause an increase in unemployment rates from this year onward.
On the 20th (local time), the ILO stated in its annual report that the number of unemployed people worldwide is expected to increase by about 2 million from last year to 190 million this year. The global unemployment rate is projected to remain at 5.4%, the same level as last year. The ILO predicted that the downward trend in unemployment rates, which had continued since 2009 until last year, will end, and unemployment rates will begin to rise from next year. The ILO's forecast for next year's global unemployment rate is 5.4%, with 194 million unemployed individuals.
The global unemployment rate surged from 5.4% in 2008 to 6.0% in 2009 immediately after the global financial crisis, then steadily declined and has maintained the 5.4% range since 2018. However, the ILO anticipates that due to concerns over a global economic slowdown and ongoing manufacturing sector downturn starting this year, unemployment rates will begin to rise again from next year.
Along with the rise in unemployment rates, the quality of employment was highlighted as a major issue. The ILO pointed out that 470 million people are engaged in forms of incomplete employment. Additionally, 22% of young people aged 15 to 24 who are able to work are unemployed and are neither receiving education nor training. The female labor force participation rate was also found to be 47%, which is 27 percentage points lower than that of males.
According to foreign media such as Bloomberg News, at a press conference held at the United Nations on the same day, ILO Director-General Guy Ryder described the situation as an "extremely worrying trend," stating, "Escaping poverty is becoming increasingly difficult, and inequalities within the labor market itself are deepening." He added, "There is a very serious gap in how easily paid jobs can be found, what kind of work it is, the quality of work, and the corresponding compensation."
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