Menu

The outlook for global labour markets has worsened in recent months and, on current trends, job vacancies will decline and global employment growth will deteriorate significantly in the final quarter of 2022, according to a new report by the UN agency International Labour Organisation (ILO).

The 10th edition of ILO Monitor on the World of Work finds that worsening labour market conditions are affecting both employment creation and the quality of jobs, pointing out that “there are already data suggesting a sharp labour market slowdown.” Labour market inequalities are likely to increase, contributing to a continued divergence between developed and developing economies.

According to the report, rising inflation is causing real wages to fall in many countries. This comes on top of significant declines in income during the Covid-19 crisis, which in many countries affected low-income groups most.

At the beginning of 2022, the number of global hours worked was recovering strongly, notably in higher-skilled occupations and among women. However, this was driven by an increase in informal jobs, jeopardizing the 15-year trend towards formalization. The situation worsened over the course of the year. In the third quarter of 2022, ILO estimates are that the level of hours worked was 1.5 per cent below pre-pandemic levels, amounting to a deficit of 40 million full-time jobs.