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World Employment and Social Outlook

  • 05 Sep 2024

On 4th 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.