ILO - INTERNATIONAL ORGANISATION

News: ILO sees structural imbalances in global labour market

 

What's in the news?

       Global unemployment rate is set to increase in 2024 while growing social inequalities remain a concern, said the International Labour Organisation’s (ILO) World Employment and Social Outlook: Trends 2024 report.

       In India, real wages are “positive” compared to other G20 countries, according to the report.

 

Key takeaways:

       The report said the macroeconomic environment deteriorated significantly over 2023.

       It said that the ongoing geopolitical tensions as well as persistent and broadening inflation triggered frequent and aggressive moves by central banks.

 

Findings of the Report:

1. Recovered below pre-pandemic level with concerns:

       Joblessness and the jobs gap have both fallen below pre-pandemic levels but global unemployment will rise in 2024, the report noted and maintained that growing inequalities and stagnant productivity are causes for concern.

2. Resilience of labour markets:

       Despite the economic slowdown, global growth in 2023 was modestly higher than anticipated, and labour markets showed surprising resilience.

3. Decline of real wages:

       Real wages declined in the majority of G20 countries as wage increases failed to keep pace with inflation.

       Moreover, in 2023, the numbers of workers living in extreme poverty – earning less than US$2.15 per day per person in purchasing power parity (PPP) terms – grew by about one million globally.

       Only China, the Russian Federation and Mexico enjoyed positive real wage growth in 2023 along with Turkey and India.

4. Deepening Structural Issues:

       As the cyclical factors impacting labour markets have slowly been absorbed, structural issues in labour market adjustment have become more pressing.

       Job retention schemes – such as those put in place in many advanced economies – proved essential to prevent firms and workers losing valuable experience and skills.

 

Go back to basics:

ILO:

       It is a UN agency established in 1919 as an agency of the League of Nations.

       It is the only tripartite United Nations agency, bringing together governments, employers and workers representatives from its 187 member states to devise international labour standards.

       HQ: Geneva, Switzerland.

       It deals with labour issues, particularly international labour standards, social protection, and work opportunities for all.

       India is a founder member of ILO.

       The ILO registers complaints against entities that are violating international rules; however, it does not impose sanctions on governments.

 

Members:

       The ILO has 187 member states: 186 of the 193 UN member states plus the Cook Islands are members of the ILO.

       In 1969, the organization received the Nobel Peace Prize for improving peace among classes, pursuing decent work and justice for workers, and providing technical assistance to other developing nations.

 

Reports:

       World Employment and Social Outlook

       Global Wage Report

       World Social Protection Report.

       World of Work Report

       Social Dialogue Report

 

Eight core conventions of the ILO:

       Forced Labour Convention (No. 29)

       Abolition of Forced Labour Convention (No.105)

       Equal Remuneration Convention (No.100)

       Discrimination (Employment Occupation) Convention (No.111)

       Minimum Age Convention (No.138)

       Worst forms of Child Labour Convention (No.182)

       Freedom of Association and Protection of Right to Organised Convention (No.87)

       Right to Organise and Collective Bargaining Convention (No.98).

 

International Labour Conference:

       It sets the International labour standards and the broad policies of the ILO.

       It meets annually in Geneva. It is often referred to as an International Parliament of Labour.

       It is also a forum for discussion of key social and labour questions.

 

International Labour Office:

       It is the permanent secretariat of the International Labour Organization.

       It is the focal point for ILO’s overall activities, which it prepares under the scrutiny of the Governing Body and under the leadership of the Director-General.