Syllabus subtopic: Important International Institutions, agencies and fora - their Structure, Mandate
Prelims and Mains focus: about the report and its key highlights; About ILO and its other reports
News: UN's International Labour Organization released its report, The World Employment and Social Outlook: Trends 2020 (WESO) on Monday,
About the report
The annual WESO Trends report analyses key labour market issues, including unemployment, labour underutilisation, working poverty, income inequality, labour income share and factors that exclude people from decent work.
Key highlights of the report
- Global unemployment is projected to increase by around 2.5 million in 2020 and almost half a billion people are working fewer paid hours than they would like or lack adequate access to paid work.
- Global unemployment has been roughly stable for the last nine years but slowing global economic growth means that, as the global labour force increases, not enough new jobs are being generated to absorb new entrants to the labour market.
- In addition, 165 million people do not have enough paid work, and 120 million have either given up actively searching for work or otherwise lack access to the labour market. In total, more than 470 million people worldwide are affected.
- Many African countries are experiencing a drop in real incomes and a rise in poverty.
- Moderate or extreme working poverty is expected to edge up in 2020-21 in developing countries, increasing the obstacles to achieving Sustainable Development Goal 1 on eradicating poverty everywhere by 2030. Currently working poverty (defined as earning less than USD 3.20 per day in purchasing power parity terms) affects more than 630 million workers, or one in five of the global working population.
- Inequalities related to gender, age and geographical location continue to plague the job market, with the report showing that these factors limit both individual opportunity and economic growth.
- Some 267 million young people aged 15-24 are not in employment, education or training, and many more endure substandard working condition.
- The rise in trade restrictions and protectionism, which could have a significant impact on employment, is seen as a potentially worrying trend, as is the significant drop in the share of national income in the form of wages, compared to other forms of production. Labour underutilisation and poor-quality jobs mean our economies and societies are missing out on the potential benefits of a huge pool of human talent.
What does the report recommend?
- Countries must ensure that economic growth and development occurs in a way that leads to the reduction of poverty and better working conditions in low-income countries, through structural transformation, technological upgrading and diversi?cation.
- We will only find a sustainable, inclusive path of development if we tackle labour market inequalities and gaps in access to decent work.
About International Labour Organisation (ILO)
- The ILO is a UN agency whose mandate is to advance social justice and promote decent work by setting international labour standards.
- Established in 1919
- HQ : Geneva, Switzerland
- India is a founder member of ILO
- The ILO registers complaints against entities that are violating international rules; however, it does not impose sanctions on governments
- The ILO has 187 member states: 186 of the 193 UN member states plus the Cook Islands are members of the ILO.
- In 1969, the organisation received the Nobel Peace Prize for improving peace among classes, pursuing decent work and justice for workers, and providing technical assistance to other developing nations.
Reports published by ILO
- World Employment and Social Outlook report
- Global Wage Report
- World Social Protection Report