The global economy is slowly recovering from an economic slowdown that began with the pandemic, although several economies face the possibility of or are emerging from a recession. While economists predicted strong growth in 2024, recovery is likely to extend into 2025 as several non-service sectors face slowdowns worldwide.
Interestingly, this economic stall is concentrated in advanced economies. Although the global labor force improved, stagnant wages against higher costs of living impact consumer spending, demand, and global trade. Overall, global growth will be propelled by specific regions while economies elsewhere stall or decline.
The global labor force has slowly recovered from the COVID-19 pandemic as unemployment reaches its lowest levels since the 1970s. The unemployment rate in the Euro area decreased again, by 0.1 percentage points to 6.4%, another record low.
Read our full report for more insights on how global labor markets are reacting to this period of economic uncertainty.