The Day at a Glance | June 2 2021

The Top

*Global labor market will not recover until 2023; the world will be 23 million jobs short next year: ILO.

*OPEC+ agrees to reduce the volume of oil production cuts to 5.8 million daily barrels for the month of July.

*The European Commission will allow the block`s countries to record fiscal deficits above 3% of GDP until 2023 to boost the recovery.

*Countries that will not make an official digital currency will face financial stability risks and less monetary autonomy: ECB.

*TPP-11 will consider the United Kingdom`s inclusion in the regional free trade, trans-pacific partnership.

Economic environment

The ILO assured that it will take two years for worldwide employment to recover from the pandemic. The International Labor Organization (ILO) assured that at least 220 million people around the world will remain unemployed in 2021 in a report made public this morning; a figure still above pre-pandemic levels. For 2022, the figure is expected to go down to 205 million, however, this number will remain above the 187 million unemployed in 2019. This implies a 6.3% rate of unemployment in 2021 and 5.7% in 2022; above the 5.4% recorded in 2019. The labor market`s conditions are more fragile if the reduction of work hours is also considered as cuts in working hours in 2020 with respect to 2019 are equal to a loss of 144 million full time jobs, figure that sets at 127 million in the second quarter of 2021. Workers remain under reduced hour working schemes in some regions like Europe even though a strong recovery has been seen in the United States. The most affected groups are women, young people and close to 2 billion workers that are considered “poor” or “very poor” compared to 2019; something that has reversed the advancements made to improve access to decent employment in the last 5 years.