The world share of labor income, which represents the share of total income earned by workers, decreased by 0.6% from 2019 to 2022 and has remained stable since then, exacerbating a long downward trend, the agency said on Wednesday. International Labour Organization (ILO).
In his new Employment and Social Outlook Reportthe ILO indicated that Income stagnation increases inequality He also stressed that a large proportion of the world’s youth are not in employment, education or training, which is keeping countries from achieving the Sustainable Development Goals (SDGs).
ILO Deputy Director-General Celeste Drake explained that while workers contribute to the growth of the global economy, They take home a smaller proportion of that growth.
“This must change, because inequality is increasing, which will have a disproportionate effect on workers“Drake added.
Pandemic and technology
The study highlights the COVID-19 pandemic as a key factor in the declineas almost 40% of the reduction in the share of labor income occurred between 2020 and 2022.
The crisis has exacerbated existing inequalities, particularly as capital gains continue to be concentrated among the richest, undermining progress towards SDG 10, which seeks to reduce inequality within and between countries.
Furthermore, the ILO argued that Technological advances, including automation and artificial intelligence, have a lot to do with it. in this trend, since although they have boosted productivity and production, they have contributed to the reduction of the proportion of labor income.
The report warns that without comprehensive policies that ensure a broad distribution of the benefits of technological progress, recent Advances in artificial intelligence could exacerbate inequality.
Equitable distribution policies are required
Celest Drake said about this: Countries must take action to counteract the risk of a decline in the share of labour income.
“Need policies that promote equitable distribution “We are committed to ensuring that we achieve economic benefits, fair labour practices and inclusive growth, and that we can help get back on the path to sustainable development for all,” said the Deputy Director General.
Many NEETs
The report also highlights that there is a large proportion of young people who do not study, work or are not in training – known as “ninis” – and states that this is a worrying reality.
Details that the Global NEET rate fell by less than one percentage point in nine yearsrising from 21.3% in 2015 to 20.4% in 2024, a level that would remain the same for the next two years. In the case of female NEETs, the figure for 2024 is 28.2%.
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