The global labour income share, which represents the portion of total income earned by workers, fell by 0.6% from 2019 to 2022 and has since remained flat, according to a report by the International Labour Organization (ILO).

The report finds upward pressure on inequality as the labour income share stagnates and a large share of youth remains out of employment, education or training.

It also found that the Covid-19 pandemic as a key driver of the decline in global labour income share, with nearly 40% of the reduction in the labour income share occurring during the pandemic years of 2020-2022.

The report warns that without comprehensive policies to ensure that the benefits of technological progress are broadly shared, recent developments in the field of artificial intelligence could deepen inequality, putting the achievement of the Sustainable Development Goals (SDGs) at risk.

Celeste Drake, ILO Deputy Director-General, said in a press release, “Countries must take action to counter the risk of declining labour income share. We need policies that promote an equitable distribution of economic benefits, including freedom of association, collective bargaining and effective labour administration, to achieve inclusive growth, and build a path to sustainable development for all.”

Drawing on the ILO’s recently published Global Employment Trends for Youth (GET Youth), the study also identifies the large share of youth outside employment, education and training as a persistent area of concern.

As GET Youth showed, the global rate of youth not in employment, education or training (NEET) registered only a modest decrease from 21.3% in 2015 to 20.4% in 2024 and is projected to remain flat for the next two years. The female NEET rate, which stood at 28.2% in 2024, is more than double that faced by young men, the report noted.