A recent report by the International Labor Organization shows that only one-fourth of the world’s workers have stable contracts. The organization’s main annual report covers more than 180 countries and over 84 percent of the workforce.

The remaining three-quarters are employed informally, illegally, on a temporary basis, with short-term contracts, through unpaid family work or are self-employed, said the ILO’s World Employment Social Outlook 2015 report titled, “The Changing Nature of Jobs.”

Among workers who earn salaries, only 42 percent have permanent contracts.

The finding revealed a clear shift away from reliable full-time jobs to an increase in short-term contracts and irregular hours. The standard model of full-time work is becoming less and less representative of today’s global job market.

This worldwide trend of moving away from more permanent employment risks “perpetuating a vicious circle of weak global demand and slow job creation” that has strongly affected many countries since the 2008 crisis, ILO said. This decline of steady jobs is accompanied by soaring global unemployment. Last year, 201 million people found themselves jobless, 30 million more than before the 2008 financial crisis.

There is some variation between countries and income levels. In higher-income countries, more than three-quarters of workers are employed on permanent contracts, although less than two-thirds of those are full time, the ILO report said. In middle-income countries, almost 72 percent of workers are employed without a contract and in 13 low-income countries with available data, only 5.7 percent.

The permanence level of the employment is closely tied to income, with permanent workers earning significantly more than non-permanent ones, creating a nearly unbreakable cycle.

Many of these workers find themselves in dire poverty, with nearly one-fourth last year living on and supporting their families on less than $2 a day. What’s more, 10 percent of the global workforce lived on earnings of less than $1.25.

Nonetheless, these numbers show vast improvement from 20 years ago, when half of the world’s workers lived well below the $2 poverty line threshold.

“In some cases, non-standard forms of work can help people get a foothold into the job market. But these emerging trends are also a reflection of the widespread insecurity,” said Guy Ryder, ILO’s director-general.

– Alison Decker

Sources: The Guardian, Business Insider CNBC Business Standard
Photo: Flickr