World Employment and Social Outlook

On 4^th September, 2024, the ILO's World Employment and Social Outlook: September 2024 Update warns of increasing inequality due to stagnant labour income, driven in part by technological advancements like AI.

Key Points

Impact of AI on Labour Income: The ILO report links the decline in global labour income to the rise of AI and automation, which have boosted productivity but reduced the share of income earned by workers.
Technological Progress and Inequality: Despite improvements in labour productivity, technological innovations have not translated into higher labour income, furthering inequality.
Need for Stronger Policies: The report emphasizes that without robust policy responses, inequality will worsen as automation continues to drive down labour's share of income.
COVID-19’s Effect on Inequality: The pandemic accelerated the decline in labour income, with nearly 40% of the reduction occurring between 2020 and 2022, exacerbating existing disparities.
Stagnation of SDGs: The report highlights the slow progress on Sustainable Development Goals, particularly SDG 10, aimed at reducing inequality within and among countries.
Call for Equitable Policies: ILO urges nations to adopt policies that ensure fair distribution of economic benefits, including promoting labour rights and collective bargaining to foster inclusive growth.