Geneva, 17 January 2023 (TDI): The International Labor Organization (ILO), a special agency of the United Nations (UN) released a report called ‘World Employment and Social Outlook’ declaring Pakistan among the low-middle-income countries.
The report stated that Pakistan remains a lower-middle-income country and will continue to be vulnerable to fluctuating energy prices.
“Pakistan is increasingly held back by very high levels of energy subsidies, which weigh heavily on public finances and are failing to reduce poverty effectively.” It highlighted.
Overview of the report
Despite economic gains, the report ranks India and Bangladesh as lower-middle-income countries and urges the entire South Asian region to reduce energy consumption. Afghanistan and Nepal are also included in the low-income countries.
ILO warns that due to the ongoing global economic downturn, finding a well-paying job will be more difficult in 2023 than in 2022.
Also read: ILO report on Youth Unemployment
According to the report, South Asia was not affected by the Ukraine conflict because it has few direct links with Russia and Ukraine. However, it is “extremely vulnerable to higher global commodity prices as a result of the conflict.”
It declares that South Asia remains particularly vulnerable to natural disasters, for example on the flood plains of Pakistan and Bangladesh.
According to the report, recent high and volatile energy prices have revealed South Asia’s vulnerability to energy imports.
It emphasizes the clear need to become less reliant on these imports. As per ILO, the global unemployment rate will rise slightly to 208 million in 2023.
The current economic downturn means that many workers will have to accept lower-quality jobs, often at meager pay. The unequal development of the global labor market remains a source of concern from a gender perspective.
There is 290 million youth who are not in employment, education, or training, and “young women fare much worse.” The report concluded.