No recovery in sight for global labour market: UN
A new UN report Monday warned that despite signs that economic growth has resumed in some regions, the global employment situation is alarming and shows no signs of recovery in the near future.
United Nations: A new UN report Monday warned that despite signs that economic growth has resumed in some regions, the global employment situation is alarming and shows no signs of recovery in the near future.
The warning was contained in a report issued by the International Labor Organisation (ILO), which warned of the emergence of a global jobs crisis, Eduardo del Buey, deputy UN spokesperson, said.
"In its annual World of Work Report 2012: Better Jobs for a Better Economy, the ILO says that around 50 million jobs are still missing compared to the situation that existed before the crisis, and a new and more problematic phase of the global jobs crisis is emerging," Xinhua quoted del Buey as saying.
"The report points out that many governments, especially in advanced economies, have shifted their priority to a combination of fiscal austerity and tough labour market reforms," he said.
"Such measures are having devastating consequences on labour markets in general and job creation in particular."
"The ILO says job recovery, especially in Europe, is not expected before the end of 2016 -- unless there is a dramatic shift in policy direction," he said.
"The report also warns that while unemployment is pushing poverty levels higher worldwide, countries in Sub-Saharan Africa, the Middle East and North Africa face increased threat of social unrest in 2011 compared to 2010 due to joblessness," he said.
Another factor leading to a worsening jobs crisis is that many job seekers in advanced economies are demoralized and are losing skills, something which is affecting their chances of finding a new job, the report said. In addition, small companies have limited access to credit, which in turn is depressing investment and preventing employment creation.
Other factors include the fact that, in most advanced economies, many of the new jobs are precarious and there exists the possibility of increased social unrest in many parts of the world. According to the report's Social Unrest Index, 57 out of 106 countries with available information showed a risk of increased social unrest in 2011 compared to 2010. The regions with the largest increases are sub-Saharan Africa and the Middle East and North Africa.
The report argues that if a job-friendly policy-mix of taxation and increased expenditure in public investment and social benefits is put in place, approximately two million jobs could be created over the next year in advanced economies.
Among the other findings of the report is that employment rates have only increased in six of the 36 advanced economies since 2007 -- Austria, Germany, Israel, Luxembourg, Malta and Poland -- and that youth unemployment rates have increased in about 80 percent of advanced countries and two-thirds of developing countries.