The International Labour Organisation (ILO) has reported a significant decline in the global labour income share, which has fallen by 1.6% since 2004. This decrease translates to an annual shortfall of $2.4 trn in 2024 compared to what workers would have earned if the share had remained stable. Celeste Drake, the ILO’s deputy director-general, said: “Countries must take action to counter the risk of declining labour income share,” and emphasised the need for equitable economic policies. The ILO’s report highlights that technological advances, particularly automation and the rise of artificial intelligence, are key factors contributing to the decline. Currently, workers earn only 52.3% of global income, while capital income continues to concentrate among the wealthiest. The ILO also noted the persistent issue of youth unemployment, with a NEET (not in employment, education, or training) rate of 20.4%, and a significant gender gap in this statistic.
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