GENEVA (AN) — The gap between rich and poor countries is widening over jobs.
Lower-income countries aren't recovering from the COVID-19 pandemic as well as richer ones when it comes to tackling unemployment, according to a new report from the U.N. labor agency on Wednesday.
The main reason? Soaring debt levels among developing countries compounded by high inflation and rising interest rates.
The global unemployment rate is expected to fall below pre-pandemic levels to 5.3%, or 191 million people. But for low-income countries in Africa and the Arab region, the International Labor Organization projects much higher rates.
Added to Russia's war in Ukraine and lingering effects of the COVID-19 pandemic, ILO notes, is a cost-of-living crisis that has hurt incomes and livelihoods around the world, especially in developing countries. Global GDP growth is expected to decelerate to 2.8% this year, down from 3.4% in 2022.
"This slowdown masks a significant divergence between advanced and developing economies. In high-income countries, labor markets remain tight despite the series of interest rate rises (though some employment deficits persist even in these economies)," the report says.
"While some large emerging economies, such as India, have returned to strong economic growth," it says, "low-income countries are facing high levels of debt and rising costs of borrowing, which further constrain their efforts to promote decent and productive employment."
'Investing in people'
For North Africa, the unemployment rate this year is projected to be 11.2%, up from 10.9% before the pandemic hit in early 2020.
For other parts of Africa, the rate is expected to be 6.3%, up fron 5.7%. And for the Arab region, the rate is expected to be 9.3%, up from 8.7% in 2019.
In contrast, Latin America and the Caribbean region is expected to fall to 6.7%, down from 8%, while most of Europe is expected to decrease to 6.3%, down from 7%, and Asian regions to reach 7.8%, down from 9.2%
ILO said it is launching a global coalition that will emphasize the need for social justice as part of the world's economic recovery. It also called on nations to offer more social protections and provide greater financial support for creating jobs.
“The findings of this report are a stark reminder of growing global inequalities," said ILO's Director-General Gilbert Houngbo. "Investing in people through jobs and social protection will help narrow the gap between rich and poor nations and people."
