Oct. 31 (UPI) — The final quarter of 2022 will see jobs decline and economic growth slow around the world, according to the International Labour Organization.
The ILO published its latest report, the Monitor of the World of Work, Monday, highlighting the impact of overlapping crises on jobs. Crises such as the war in Ukraine, global inflation and political turbulence create a perfect storm that could lead to even harder times for people everywhere.
Inflation and income stagnation are causing workers to earn less in real dollars as their income does not go as far. The strain affects everything from energy costs to grocery bills. It is also aggravating inequalities between the haves and have-nots.
“These crises are likely to further increase labor market inequalities due to the disproportionate impact on certain groups of workers and firms, while contributing to a growing divergence between developed and developing economies,” the report said.
This year started with continued recovery from the height, or lows, of the COVID-19 pandemic. Hours worked were on the way up but that has not continued late into the year. Hours worked in the third quarter are estimated at about 1.5% lower than fourth quarter 2019. Informal job growth is moving faster than formal work, meaning untaxed and unregistered work is on the rise. These developments indicate a slowing market and a potential weakening tax revenue where applicable.
Workers are not only suffering from their earnings being devalued. Stagnant economic growth will mean job creators will tighten and possibly have less demand for workers due to uncertainty over the global economy. The amount of quality jobs could also take a downturn.
Many of the factors at hand are beyond control, but the end of the war in Ukraine would certainly change the tides in a more positive direction to some degree. The National Bank of Ukraine predicts its economic output will decrease by more than 30% this year. It estimates the country has suffered about $114.5 billion in damage and reconstruction will likely cost $198 billion or more.
Meanwhile the United Nations is leading an initiative to create more than 400 million new, quality jobs.
“Tackling this deeply worrying global employment situation, and preventing a significant global labor market downturn, will require comprehensive, integrated and balanced policies both nationally and globally,” said ILO Director-General, Gilbert Houngbo.
