Unemployment and inequality both look set to rise because multiple and overlapping economic and political crises are threatening labor market recovery worldwide, according to the latest edition of the ILO Monitor on the World of Work.
The world according to ILO is facing a deficit of 40 million full-time jobs. This is not good news for the textile sector that needs full-time workers for their continuous processes. The textile workers that mostly operate in developing and low income countries were deprived of livelihood during covid-19 that lasted for three years from 2019-2022 as factories were closed.
While the shortage in developed economies is of high skilled workers that now provide their skilled services to multiple companies but in the textile economies the textile labor shifted to other professions for earnings near their homes. Many of them did not return to work when covid subsided.
Moreover, according to ILO rising inflation has caused the real wages to sharply fall in many countries. The low paid textile workers suffered most and lost the charm of a full time job. Labour market inequalities are likely to increase, contributing to a continued divergence between developed and developing economies.
“Tackling this deeply worrying global employment situation, and preventing a significant global labour market downturn, will require comprehensive, integrated, and balanced policies both nationally and globally,” said ILO director-general, Gilbert F Houngbo.
“We need the implementation of a broad set of policy tools, including interventions in the prices of public goods; the rechannelling of windfall profits; strengthening income security through social protection; increasing income support; and targeted measures to assist the most vulnerable people and enterprises.”
