Global Inequality: Trillions of dollars “taken away” from workers
The share of all global income going to workers has fallen significantly over the past two decades, increasing inequality and depriving workers of billions of dollars, the International Labor Organization (ILO) warns in the latest study.
According to ILO data, the global share of income from work, that is, the share of total income in the economy generated by work, has decreased by 1.6 percentage points from 2004 to today.
“While this may seem small, the annual shortfall in labor income this year is $2.4 trillion. Workers earned so much less because the share of income from labor did not remain stable compared to 2004,” they wrote, reports the French agency AFP.
The study pointed to the covid-19 pandemic as the main driver of the decline, with almost half of the decline in the share of labor income occurring in the period 2020-2022. The global crisis has worsened existing inequalities, especially considering that income from capital is still increasingly concentrated among the richest.
“Guilty” and artificial intelligence
An important contribution to the reduction of the share is technological progress, which brings increasing automation. Although it increased productivity, workers shared the benefits unevenly.
An additional risk in this area is the rapid development of artificial intelligence. “If historical patterns hold, recent breakthroughs in generative artificial intelligence could further reduce the share of labor income,” the ILO warned.
“Countries must act to prevent the risk of a decline in the share of labor income,” said ILO Deputy Director-General Celeste Drake.
“We need policies that promote a fair distribution of economic benefits, including freedom of association, collective bargaining and more effective labor administration, to build a path to sustainable development for all,” she added.
Source: Seebiz
Photo: Pixabay, screenshot
Source: bizlife.rs
