Thursday 24 January 2013
Global labour markets are worsening again. Growth has slowed down and this has also led to 197 million people being without a job in 2012. In spite of a moderate pick-up in growth in 2013-2014, the prospects for those years are not comforting: increase in unemployment by respectively 5.1 and 3 million. Regions which have managed to prevent a further increase in unemployment, have often been faced with a worsening in job quality, a rise in vulnerable employment and more workers living below or near the poverty line.
The weak growth in the advanced economies in 2012, with particular recession conditions in Europe, has had a spillover effect on economies in other regions of the world. For example, growth rate in China slowed down to 7.8 percent, the slowest growth rate since 1999.
Investment has not yet recovered to pre-crisis levels in many countries. The incoherence of policies adopted by different countries in order to deal with the financial crisis, in particular in the euro area, has led to uncertainty about future conditions and reinforced tendencies to increase cash holdings rather than expand capacities and hire new workers. Labour market mismatch is being intensified by the length and depth of the crisis which spreads through international trade. In particular, jobs in exporting industries are under threat.
New jobs often require skills which the unemployed do not possess. Governments are therefore advised to implement policies to re-skill and activate current jobseekers.
Guy Rider, director general to the ILO, underlines that the world crisis cannot be solved by countries on their own. The global dimension of the crisis requires internationally coordinated actions.