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The eleventh edition of the XILO Monitor on the world of work highlights the global employment divide, with low-income countries being left behind due to a lack of action on jobs and social protection. The report finds that various global shocks and risks are hindering labor market recovery, particularly in low- and middle-income countries. These countries are facing high inflation and interest rates, as well as a growing risk of debt distress. As a result, the ILO projects that low-income countries, Africa, and the Arab States are unlikely to recover to pre-pandemic levels of unemployment this year. The global unemployment rate is expected to fall below the pandemic level in 2023, but this is due to stronger-than-expected resilience in high-income countries rather than a generalized recovery. The jobs gap is projected to stand at 453 million people, more than double the level of unemployment. The jobs gap is much higher among women (14.5 per cent) than men (9.8 per cent). The report also finds that differences in the jobs gap reflect a global employment divide, with low-income countries facing the largest jobs gap rate at 21.5 per cent, while the rate in middle-income countries stands slightly above 11 per cent. High-income countries register the lowest rates, at 8.2 per cent. Low-income countries are the only country income group that has seen a long-term rise in the jobs gap rate, from 19.1 per cent in 2005 to 21.5 per cent in 2023. Furthermore, low-income countries in debt distress face a jobs gap of 25.7 per cent in 2023. In conclusion, the report emphasizes the urgent need for action to address the employment challenges faced by low-income countries and ensure a more inclusive global recovery.
