In 2024, global employment expanded in line with a growing labour force, keeping the global nemployment rate steady at 5 per cent, similar to that of 2023. At the same time, employment growth remained too weak to have a significant impact on persistent decent work deficits around the world. Young people, especially, continue to face much higher unemployment rates ? around 12.6 per cent ? with few signs of improvements. With the return to pre-pandemic levels of informality and working poverty, the job recovery has lost much of its ability to generate further improvements and close the gap with the targets of the SDGs. As the economic and social outlook remains highly uncertain ? with geopolitical frictions, rising costs of climate change, and unresolved sovereign debt risks ? the resilience of labour markets is being tested. Low-income countries appear to be particularly vulnerable, since progress in decent work creation has been slowest in these countries.
The global economy continues to expand at a moderate rate, but it is projected to gradually lose steam, preventing a stronger and more durable labour market recovery. Rapidly decelerating inflation rates and strong growth in a few major economic centres have helped the global economy to stabilize. Headwinds have set in, however, as geopolitical frictions have risen and both monetary and fiscal policies have returned to pre-pandemic stances. Demographic shifts in advanced and some large emerging economies continue to be felt, while labour shortages have somewhat eased but not completely disappeared. Especially among European countries, labour hoarding remains high, preventing a faster return to pre-pandemic trends. Investment rates have fallen again and energy price hikes have taken a toll on industrial production. Except in Northern America, productivity growth shows no signs of acceleration despite major technological advances, especially in information technologies and medical research.