Labor

ILO: Global Unemployment Divide Growing Between High and Low Income Countries

JUN 1 2023·Updated AUG 27

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Image credit: Wikimedia Commons

The Facts

The UN’s labor agency, the International Labour Organization (ILO), released a report on Wednesday showing that the unemployment divide between high and low-income countries is widening, despite a fall in global unemployment to 5.3%.
Reuters
The ILO’s 11th edition of the Monitor on the World of Work illustrates that a confluence of crises since the COVID pandemic have caused unemployment rates in Africa and Arab countries to surge, with no signs of imminent recovery. The North African rate sits at 11.2%, higher than the 10.9% of 2019.
MSN
Meanwhile, Sub-Saharan Africa’s unemployment rate sits at 6.3% compared to 2019’s 5.7%, and the Arab states jobless rate in 2023 is 9.3% compared to the pre-pandemic level of 8.7%. However, Latin American and Caribbean countries have seen better employment numbers, with their rate falling from 8% to 6.7%.
The Economic Times
“Mutually reinforcing crises” from the pandemic, Ukraine war, and global inflation have had a disproportionate impact on poorer countries amid rising debt levels. 37 countries are facing interest rates above 10%, while 60% of countries are in or at risk of debt distress according to IMF data.
Al Jazeera
The ILO also developed a new metric called the jobs gap, which measures how many people want to work but remain unemployed. The report shows that low-income countries are seeing an alarming 21.5% jobs gap rate, while middle-income countries sit at 11% and high-income nations at 8.2%.
Devdiscourse
ILO Director-General Gilbert F Houngbo urged the development of a global social safety net to help developing countries endure economic hardships, adding that “[i]nvesting in people through jobs and social protection” will help close the gap between rich and poor nations.
Al Jazeera

Sources Split

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The Spin

Narrative A

Increased globalization and interdependence between nations has caused poorer countries to disproportionately bear the brunt of global crises. While wealthier nations aren’t immune to the economic issues brought on by pandemics and war, they are much better equipped to weather them. As the international community looks to solve global economic inequality, it should focus on promoting economic independence for and reform in developing nations.

Carnegie Endowment for International Peace

Narrative B

The UN and ILO are deeply committed to helping developing nations close the jobs gap, as well as to bridging the broader economic gap between rich and poor countries. While a return to pre-pandemic levels of unemployment rates seem unlikely in 2023, coordinated social protection and programs to promote equality will help advance developing nations and bring long term economic viability and success. Poorer countries cannot be expected to address these issues on their own.