Introduction
With the beginning of 2024, many predictions and studies are showing a potential increase in the rate of unemployment. The International Labor Organization (ILO) is one of the institutions or probably the most important one to conduct such studies.
According to the ILO, the unemployment rate decreased in 2023 which was a positive sign, especially after the covid-19 that caused big challenges to governments, central banks, and societies. But this year it is expected that more than two million workers will search for a job.
This increase has many reasons, such as the geopolitical tensions and the increase of inflation that is slowing down the economic recovery for the nations.
However, in 2023 the labor markets showed surprising flexibility and were able to achieve global growth which was a bit higher than expected. (You can check the resources at the end of the article). On the other hand, the ILO mentioned that real wages fell in most G20 countries because these increases did not move at the same speed as inflation.
And the most important thing to mention is that the living standards caused by inflation are unlikely to be quickly compensated.
The report of ILO assesses recent trends in the labor market, including unemployment, job creation, labor force participation, and working hours, and then links them to their social outcomes. Also, it indicates that some data, especially related to growth and unemployment, are “encouraging,” as announced by the Director-General of the International Labor Organization, Gilbert Houngbo. He added, "A deeper analysis reveals that the imbalance in the labor market is widening."
He explained: “It appears that this imbalance is not only related to recovery from the pandemic but rather is structural.” The report continued that China, Russia, and Mexico “benefited from positive real wage growth in 2023.”
Where the real wages declined in other G20 countries. Brazil (6.9 percent), Italy (5 percent) and Indonesia (3.5 percent) recorded the largest declines.
The Director-General of the International Labor Organization said: “The labor problems mentioned (in the report) pose a threat to the livelihoods of individuals and companies, and we must address them effectively and quickly.”
The Director-General of the organization announced, “The decline in living standards and low productivity, along with persistent inflation, create conditions for greater inequality and undermine efforts to achieve social justice,” adding that “in the absence of greater social justice, we will never be able to achieve a lasting recovery.”
What do we understand from all of this?
By taking all the statistics, opinions, and studies mentioned above we can clearly understand that the traditional system is getting worse leading to a destruction in our social structure and that will orient all survivors to look for a new way to live other than only working for food (again). Life now needs a lot more than only finding bread.
The big opportunity is in front of all of us we only need to take action. By studying, understanding, and adopting decentralization and cryptocurrency we won’t be afraid of the unemployment statistics anymore, this will be our path to financial freedom.
Conclusion
While the global unemployment rate is expected to rise slightly in 2024, the bigger concern lies in the underlying structural imbalances and erosion of living standards caused by mixed recession, slow economic recovery, and persistent inflation. These factors trigger inequalities and prevent social progress.
This imbalance in the labor market and declining living standards demand immediate and effective solutions. No one can afford to ignore the threats to individuals and societies.
But it’s not the end since new opportunities stand out through decentralization and cryptocurrencies, offering the potential for financial freedom and alternative economies.
Sources are available:
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