ILO warns on threat to jobs
The world faces a “dramatic downturn” in employment over the coming months unless governments act to soften the effect of the economic slowdown on labour markets, the International Labour Organisation warns in a report today.
Ahead of this week’s summit of G20 leaders, the ILO says the global economy is on the verge of a “new and deeper jobs recession” that will delay recovery and could spark more social unrest in dozens of countries. It says two-thirds of advanced economies and half of emerging economies are already experiencing a slowdown in job creation at a time when worldwide unemployment stands at a record of more than 200m.
The ILO calls for “carefully designed” programmes to support jobs, including improved skills training and help with job searches. The US is the only big advanced country with a national jobs plan, it says.
“We have reached the moment of truth. We have a brief window of opportunity to avoid a major double-dip in employment,” said Raymond Torres, director of the ILO’s International Institute for Labour Studies.
One reason why the impact of the latest economic slowdown on employment could be greater than before is that employers are now in a weaker position to retain workers, the report says.
After the collapse of Lehman Brothers, the US bank, in 2008, many enterprises kept staff on, expecting the slowdown to be temporary - but three years on, the business environment is more uncertain and retention may be less widespread.
As pressure to adopt fiscal austerity measures
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