The excessive policy tightening is causing undue damage to jobs and income in both advanced and developing countries, the report said.
The excessive policy tightening is causing undue damage to jobs and income in both advanced and developing countries, the report said.
According to the tenth edition of the International Labor Organization (ILO) Monitor on the World of Work, the global labor market will worsen due to conflicts between Ukraine and Russia and other crises such as the effects of the pandemic and the economic slowdown. in Geneva on Monday. The report warned that unemployment and inequality were set to rise in the face of multiple and overlapping economic and political crises and urged governments to adopt comprehensive, integrated and balanced policies to address not only inflation, but also employment, enterprises and poverty. It also had “widespread implications” for ,
The monitor noted that excessive policy tightening is causing undue damage to jobs and income in both advanced and developing countries. “There is a need to broaden the set of policy tools to deal with multiple crises through social dialogue, which will include: (a) intervention in setting prices for public goods; (b) to reinvest windfall profits; (c) strengthening of income security through social security; (d) increasing income support to maintain the purchasing power of labor income; and (e) targeting support to the most vulnerable people and enterprises,” the ILO suggested.
It also called for continued attention to decent jobs and social security to support labor markets in Ukraine and other countries affected by the ongoing conflict. “Labor market integration measures for Ukrainian refugees also need to be strengthened. In responding to the many economic and geographical crises on a global scale, internal cohesion and coordination is even more important, and policy cohesion is critical, which the United Nations said. The key objective of the Global Accelerator on Jobs and Social Protection for Just Transition is stated in the report.
The report said inflation, which was already rising in 2021 due to supply-side disruptions related to COVID-19 and rising demand as lockdown measures were lifted, intensified due to Ukraine’s war . “High and persistent inflation is creating enormous pressure on labor income and workers are struggling to maintain their purchasing power, increasing the risk of increasing poverty and inequality,” the report said.
The report also found that poor labor market conditions were affecting both job creation and the quality of jobs, pointing out that “there were already figures suggesting a sharp labor market slowdown.” “Labor market inequalities are likely to widen, contributing to the continuing divergence between developed and developing economies,” the report said.
The report noted that the number of global hours worked was improving strongly at the beginning of 2022, especially among highly skilled occupations and women. “However, this was driven by an increase in informal jobs, jeopardizing the 15-year trend toward formality. The situation worsened during the year and the ILO estimated the number of hours worked in the third quarter of 2022. The level was 1.5% below pre-pandemic levels, which was a shortfall of 40 million full-time jobs,” the ILO said in a release.