Inequality widens as global labour income share drops
12 September 2024 |
4:48 am
The International Labour Organisation (ILO) in its newly-released World Employment and Social Outlook: September 2024 Update, has found upward pressure on inequality as the labour income share stagnates and a large share
The International Labour Organisation (ILO) in its newly-released World Employment and Social Outlook: September 2024 Update, has found upward pressure on inequality as the labour income share stagnates and a large share of youth remains out of employment, education or training.
The report indicated slow progress on key Sustainable Development Goals (SDGs) as the 2030 deadline approaches. The study revealed that the global labour income share, which represented the portion of total income earned by workers, fell by 0.6 percentage points from 2019 to 2022 and has since remained flat – compounding a long-running downward trend.
It stated that if the share had remained at the same level as in 2004, labour income would be larger by $2.4 trillion in 2024 alone. The study also highlighted the COVID-19 pandemic as a key driver of the decline, with nearly 40 per cent of the reduction in the labour income share occurring during the pandemic years of 2020-2022.
According to the report, the crisis exacerbated existing inequalities, particularly as capital income continued to concentrate among the wealthiest, undermining progress towards SDG 10, which aimed to reduce inequality within and among countries.
It said technological advances, including automation, have played a role in this trend. While the innovations have boosted productivity and output, the evidence suggests that workers are not sharing equitably from the resulting gains.
The report warned that without comprehensive policies to ensure that the benefits of technological progress are broadly shared, recent developments in the field of artificial intelligence could deepen inequality, putting the achievement of the SDGs at risk.
ILO Deputy Director-General, Celeste Drake, said: “Countries must take action to counter the risk of declining labour income share. We need policies that promote an equitable distribution of economic benefits, including freedom of association, collective bargaining and effective labour administration, to achieve inclusive growth, and build a path to sustainable development for all.”
Drawing on the ILO’s recently published Global Employment Trends for Youth (GET Youth), the study also identified the large share of youths outside employment, education and training as a persistent area of concern.
As GET Youth showed, the global rate of youths not in employment, education or training (NEET) registered only a modest decrease from 21.3 per cent in 2015 to 20.4 per cent in 2024 and is projected to remain flat for the next two years. The female NEET rate, which stood at 28.2 per cent in 2024, is more than double that faced by young men, consequently jeopardising SDG 8.
Related
Latest
1 hour ago
Feeling a little unmotivated as the week starts? Don’t worry, you’re not alone. At one point or another, everyone feels the same way. Mondays can be tough, but with the right mindset, you can conquer anything. To help you kickstart your week on a positive note, we’ve curated a collection of inspiring quotes, affirmations, and…
1 hour ago
Kachalla Ibrahim Gurgun Daji, a daredevil and notorious bandit leader, has been eliminated in Kwanar Nasiru, located east of Mada town in Gusau Local Government Area of Zamfara State, The Guardian has reliably learned.
1 hour ago
Transforming Nigeria’s tax sector is not just a goal; it’s a mission that Dr. Zacch Adedeji, Executive Chairman, Federal Inland Revenue
1 hour ago
China on Monday imposed sanctions on two prominent Taiwanese over alleged "separatism", after it launched large-scale military drills
1 hour ago
The Nigerian delegation for Tuesday's 2025 AFCON qualifier against Libya remains stranded at Al Abraq Airport, 12 hours after their arrival. The Director of Communications at the Nigeria Football Federation (NFF), Ademola Olajire, stated on Monday morning that they understand Al Abraq International Airport is typically used only for hajj operations. According to the statement,…
1 hour ago
The International Renewable Energy Agency (IRENA) has raised concerns about the slow progress of energy transition projects in Africa
2 hours ago
Super Eagles players have resolved to boycott Tuesday's AFCON second leg qualifier against Libya. This was confirmed by Super Eagles captain William Troost-Ekong on X. The decision was taken following the maltreatment players and officials of the Eagles were subjected to by Libyan authorities. "12+ hours in an abandoned airport in Libya after our plane…
2 hours ago
Libyan authorities on Sunday detained Super Eagles players and officials at the Al Abaq airport in Al Abaq, ahead of the second leg of the AFCON 2025 qualifiers between both countries. The second leg of the qualifiers will take place in Benghazi on Tuesday, October 15, 2024. In a video posted on the Nigeria Football…
2 hours ago
Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oloyede, has denied rumours that he proposed a reduction
3 hours ago
Nigerian bodybuilder Samson Dauda has emerged winner of the 2024 Mr. Olympia competition, held at the Las Vegas Convention Center, USA. For winning the 60th edition of the Mr. Olympia, Dauda got a record cash prize of $600,000. The 32-year-old beat two former champions Hadi Choopan of Iran and Derek Lunsford of the USA to…
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.