Global Labour Resilience Index 2022: Stagnating Resilience.

Five years of near-flat rankings, and a widening gap between leaders and laggards.

Global Labour Resilience Index 2022: Stagnating Resilience, report cover
Index · 2022Feb 2022Whiteshield · CEMS

Labour-market resilience is stagnating across the world.

Whiteshield launched, in February 2022, its annual report on labour-market resilience: Global Labour Resilience Index 2022: Stagnating Resilience. Over the previous 12 months, the world continued to deal with the after-effects of an unprecedented crisis with considerable long-term ramifications for which it was not prepared.

The 2022 edition of the GLRI continues to build on its resilience-capabilities framework, placing emphasis on the key capabilities countries require to better prepare for both shorter-term shocks, such as COVID-19, and longer-term stresses including technological disruption and the green transition.

Download the GLRI 2022 Report  →

Labour-Market Resilience Is Stagnating

There has been very little movement in the GLRI rankings over the last five years, predominantly because labour-market resilience has become stagnant. Almost half of the countries have either experienced a decline in labour-market resilience or increased their score by less than one point. Countries must address their structural or cyclical weaknesses if they are to boost labour-market resilience.

Too Many Countries Are Being Left Behind

Over one-third of the countries in the Index score less than 50 out of 100 on labour-market resilience, and 70% of countries in Sub-Saharan Africa rank below 100. There is a major gap between resilient leaders and laggards, and without a change in policy, this will continue. Failing to close the resilience gap is a cause for concern, as many nations did not have the tools or capabilities in place to cope with COVID-19. Shocks are inevitable, and without change many will again find themselves prone to labour-market disruption.

The Recovery Is Not Uniform, and Capabilities Are Essential

The USA has the highest adaptive capabilities, meaning it can recover from a shock with relative ease and speed. Over the last two years this has been evident: unemployment rose drastically during the early stages of the COVID-19 crisis but has since recovered to almost return to pre-crisis levels. Adaptive capacity is enhanced by a supportive entrepreneurial environment, including strong performance on the ease of getting credit and the time taken to start a business.

New business registrations in the USA were 53% higher in 2021 than in 2019.

Registrations dropped drastically during the initial months of the crisis but have since rebounded and continue to grow at pace. The country has been able to use its capabilities to rebound quickly, however, only time will tell if this is sustainable.

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