Updated January 10th, 2024 at 17:37 IST
UN labour body lauds India's contribution to growth in South Asia
The ILO report indicates that real wage growth was positive only in a few countries, including China, the Russian Federation, Mexico, India, and Türkiye.
World Employment Outlook: India has contributed to the growth of the South Asia subregion, thanks to high investment growth, according to the World Employment and Social Outlook 2024 report by the International Labour Organisation. Despite challenges, India's economic performance has positively influenced the overall economic dynamics in the region. The ILO report indicates that real wage growth was positive only in a few countries, including China, the Russian Federation, Mexico, India, and Türkiye, while other G20 countries experienced declines in real wages.
Global unemployment trends
The report indicates that the global unemployment rate is expected to reach 5.2 per cent in 2024, primarily due to increased joblessness in advanced economies. It says despite the concerns about employment growth in high-income countries, South Asia, with its diverse economic landscape, is experiencing varied impacts.
The ILO's 2024 World Employment and Social Outlook report forecasts a rise in global unemployment, with the number of unemployed individuals expected to increase by 2 million. This would lift the global unemployment rate from 5.1 per cent in 2023 to 5.2 per cent in 2024.
South Asia's economic landscape
Despite global concerns, South Asia is showing resilience. The region experienced the highest growth rate in 2023 at 5 per cent, surpassing East Asia (4.2 per cent) and South-East Asia and the Pacific (3.8 per cent). India has played a significant role in buoying growth for the subregion, driven in part by high investment growth.
Impact of inflation and energy shortages
While many countries in Asia and the Pacific managed to avoid accelerating inflation, some South Asian nations, including Bangladesh, India, and Pakistan, have implemented import suppression measures and are facing energy shortages, impacting industrial output.
Anticipated decline in participation rates
Looking ahead, participation rates across all income groups and genders are expected to decline, with a more pronounced fall among women. Unemployment is projected to rise modestly, with an increase of 2 million in 2024, reaching 190.8 million globally.
Challenges in high-income countries
The situation is particularly concerning in high-income countries, where employment growth is expected to turn negative in 2024, with only modest improvements anticipated in 2025.
Published January 10th, 2024 at 17:37 IST