The United Nations said on Wednesday that the global unemployment rate will slightly increase in 2024, raising concerns regarding stagnant productivity, rising inequalities and inflation affecting disposable income.

According to the UN's labour agency, the economic recovery from the pandemic has stagnated, with central banks forced to make more aggressive moves due to ongoing geopolitical tensions and rising inflation.

The International Labour Organization (ILO) reported that global growth in 2023 was higher than anticipated. However, real earnings fell in the majority of G20 countries as wage increases failed to keep up with inflation.

The global unemployment rate stood at 5.3 percent in 2022 and improved to 5.1 percent in 2023. However, it is predicted that an extra two million workers will join the labour force, raising the global unemployment rate to 5.2 per cent in 2024.

In the World Employment and Social Outlook Trends report for 2024, the ILO reported that the deterioration of living standards caused by inflation is "unlikely to be compensated quickly" in the majority of G20 countries.

ILO Chief Gilbert Huongbo reported that the data found on the growth and unemployment are “encouraging”, however, a deeper analysis revealed that labour market imbalances are growing and that, in the context of multiple and interacting global crises, this is eroding progress towards greater social justice. He added that without greater social justice, sustainable recovery would be tough to achieve.

According to the research, only China, Russia, and Mexico had a positive real wage growth in 2023. Other G20 countries' real wages declined, with Brazil (6.9%), Italy (5%), and Indonesia (3.5%) showing the sharpest declines.