By the evidence in the hands of the International Labor Organization (ILO), the growing gap between labor and capital income, as well as the challenges for young people are worrying.

In its World Employment and Social Outlook Update: September 2024, the UN agency notes upward pressure on inequality as labor income participation stagnates and a large proportion of young people remain without employment, education or training (the so-called ninis).

According to the analysis, the global share of labor income, which represents the share of total income earned by workers, decreased by 0.6 percentage points from 2019 to 2022 and has since remained stable.

This exacerbates a long downward trend: if the share had remained at the same level as in 2004, labor income would have increased by $2.4 trillion in 2024 alone, the ILO reasoned.

The Covid-19 pandemic was a key factor in the decline, with nearly 40 percent of the decline in the labor income share taking place between 2020 and 2022.

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