Concurrent reinforcing crises are disproportionately affecting developing countries, worsening the global employment gap between high-income and low-income countries and widening existing inequalities already exacerbated by the COVID-19 pandemic, states the new ILO report. The response of low-income countries to multiple simultaneous crises ( or “poly-crisis”, as stated in the report) is limited due to a combination of inflation, high-interest rates, and an increased risk of debt distress.

While global unemployment in 2023 is expected to fall below levels before the COVID-19 pandemic, this is not foreseen for low-income countries, which remain far behind in the recovery process, according to the ILO report.  

A new indicator developed by the ILO, named Jobs Gap, offers a more comprehensive measure of the employment gap. especially in developing countries. It encompasses all persons who would like to work but do not have a job.

This indicator further reveals a global employment divideLow-income countries face the largest jobs gap rate at 21.5 per cent, while the rate in middle-income countries stands slightly above 11 per cent. High-income countries register the lowest rate, at 8.2 per cent.

The report also stresses that developing countries face even more entangled and cascading crises which, together with broader global challenges, exacerbate labour market impacts. These range from natural disasters (to domestic political and economic shocks, which add to the lasting effects of COVID-19, climate change and the cost-of-living crisis.

Furthermore, the report also highlights significant social protection policy gaps in developing countries, which aggravate the current situation. New evidence shows that increasing investment would bring large economic, social, and employment benefits and narrow the global jobs divide. “Financing social protection is challenging, but not unattainable”, states the report.

Finally, the report calls for international solidarity and global financial support to foster employment growth, and to implement and strengthen social protection schemes. During a time of poly-crisis and shocks, revised policy interventions will ensure recovery and reconstruction and support long-term structural transformation.

“The findings of this report are a stark reminder of growing global inequalities. Investing in people through jobs and social protection will help narrow the gap between rich and poor nations and people. This is why the ILO is launching a Global Coalition for Social Justice. The Coalition will bring together a wide range of multilateral bodies and stakeholders. It will help to position social justice as the keystone of a global recovery, and make it a priority for national, regional, and global policies and actions,” said ILO Director-General Gilbert F. Houngbo.