Whiteshield has released the Global Labor Resilience Index (GLRI) 2024 on the sidelines of Davos 2024, the World Economic Forum annual meeting. The report reveals that the UAE is the Arab country that is the most labor resilient.
Notably, the report emphasizes the importance of resilient labor markets in facing the challenges of climate change and fostering a sustainable, green future. Labor market resilience is the ability to face and recover from disruptions. The report measures this index through both Structural and Cyclical pillars.
Environmental needs and labor market dynamics
The GLRI 2024 advocates for a holistic strategy where policymakers integrate climate and labor policies to ensure a smooth and equitable transition to a green economy. It recognizes the significance of both environmental needs and labor market dynamics. Therefore, the report calls for insights to strengthen labor markets and prepare them for the evolving landscape.
Switzerland secures the top position globally, with European nations dominating the list. Meanwhile, Singapore stands out as the only non-European country among the leading nations. In the Middle East, the UAE emerges as a frontrunner, showcasing the highest labor resilience among Arab countries.
China ranked 36th and holds the potential to redefine its economy through the green transition, emphasizing innovation, domestic consumption, and market orientation. Its challenge lie in ensuring a sufficient supply of green skills. Meanwhile, India ranked 61st and sees the green transition as an opportunity to modernize, elevate living standards, and create millions of new green jobs. Policymaking to define green jobs and ensure a just transition is deemed essential.
Green transition
The green transition holds strategic importance for economic diversification, innovation, and trade in the Middle East. While the UAE leads in labor resilience, the report notes Saudi Arabia’s efforts to catch up by diversifying its economy and enhancing workforce skills. Hence, the report underscores the crucial role resilient labor markets play in shaping environmental performance for a sustainable and adaptable future.
Read: Davos 2024: WEF report advocates holistic growth assessment
Structural changes and effective policies
The evolution towards sustainability necessitates structural changes in the economy. Effective policies and institutions serve as catalysts for “greening” the labor market. The report calls for policies to curb inequalities during the green transition, strengthen economic fundamentals, and protect workers and firms from shocks. The framework of GLRI 2024 measures the ability of labor markets to face disruptions and adjust to ongoing megatrends, emphasizing resilience, inclusivity, and sustainability.
Ranking 136 economies, the GLRI 2024 provides key insights into the strengths and weaknesses of global labor markets. The report underscores the importance of education in empowering citizens for the green transition. While high-income countries with quality institutions are better equipped for the transition, the report highlights that 59 out of 136 countries are ill-prepared for changes induced by climate policies.
In summary, GLRI 2024 provides a comprehensive analysis of global labor resilience, offering valuable insights for policymakers navigating the challenges and opportunities presented by climate change and green transitions.
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