The International Labour Organization’s 2020 report on employment and social trends finds that income inequality is higher than previously thought, especially in developing countries, providing an indicator of social unrest.

The ‘World Employment and Social Outlook: Trends 2020’ (WESO), which was released on 20 January 2020, uses new data and estimates of labor market inequalities. It finds, first, that although global unemployment has been stable for about nine years, slowing global growth means that not enough new jobs are being generated to ensure work for the entire global labor force. As a result, unemployment is projected to increase by around 2.5 million in 2020, and 188 million are already unemployed.

Second, the report shows that unemployment is not the only type of “labor underutilization.” In addition, 165 million people don’t have enough paid work, and 120 million have either given up actively searching for work or otherwise lack access to the labor market. In total, almost half a billion people are working fewer paid hours than they would like, or lack adequate access to paid work. 

Third, inequalities by gender, age and geographic location affect labor markets and limit opportunities for workers as well as economic growth. ILO Director-General Guy Ryder said work-related inequalities and exclusion are preventing millions of people from finding decent work. He said this is “an extremely serious finding” with “profound and worrying implications for social cohesion.”

The ILO press release also discusses working poverty, which is defined as earning less than USD 3.20 per day and affects over 630 million workers, or one in five workers globally. The ILO notes that as “moderate or extreme working poverty” in developing countries is “expected to edge up” over the next two years, it will be more difficult to achieve SDG 1 (no poverty).

The annual WESO Trends report analyzes key labor market issues, including unemployment, labour underutilization, working poverty, income inequality, labor income share and factors that exclude people from decent work. [ILO News] [Publication: World Employment and Social Outlook – Trends 2020] [DESA News]