The economic fallout from the COVID-19 pandemic together with recent geo-political crises have impacted labour markets in very different ways, according to a new report.
In many advanced economies, unemployment rates are the lowest they have been for decades and labour shortages are widespread. In member countries of the Organisation for Economic Cooperation and Development (OECD) the average jobless rate was 4.9% at the end of 2022.
However, the picture is very different elsewhere. In low and lower-middle-income countries, levels of unemployment remain above pre-pandemic levels. Lower-middle income countries in particular have been experiencing the highest rates of unemployment.
This is why the World Economic Forum is launching a Global Future Council on the Future of Job Creation, to help leaders discover and act on key investment pathways to create new jobs. In preparation for the council, a new report lays out the global need for job creation and four potential investment pathways leaders should consider.
Factors affecting job creation
Demographics have also played a significant role in the mixed global employment picture. Labour shortages in richer countries may be compounded further by a decline in the working-age population.
The paper notes that in Africa, which has the highest unemployment rates, the population is projected to grow by 450 million by 2035. But World Bank data suggests that without policy reform between now and then, there may be only 100 million new jobs on the continent available by then.
Women also experienced a greater loss of employment during the pandemic. Gender parity in the labour force was 62.9%, according to the World Economic Forum’s Global Gender Gap Report 2022. This is the lowest level ever registered by the index.
And young people are another demographic experiencing greater levels of joblessness. The share of 15-24-year-olds not in employment, training or education rose to 23.3%, according to International Labour Organization (ILO) data.
