WUNRN
ILO - International Labour
Organization
The
International Labour Organization (ILO) is devoted to advancing opportunities
for women and men to obtain decent and productive work in conditions of
freedom, equity, security and human dignity. Its main aims are to promote
rights at work, encourage decent employment opportunities, enhance social
protection and strengthen dialogue in handling work-related issues.
28
January 2009
Direct Link to Report:
Website Link: http://www.ilo.org/global/About_the_ILO/Media_and_public_information/Press_releases/lang--en/WCMS_101462/index.htm
Other
languages |
|
UNEMPLOYMENT,
WORKING POOR AND VULNERABLE EMPLOYMENT TO INCREASE DRAMATICALLY DUE TO
GLOBAL ECONOMIC CRISIS.
GENEVA
(ILO News) –
The global economic crisis is expected to lead to a dramatic increase in the
number of people joining the ranks of the unemployed, working poor and those in
vulnerable employment, the International Labour Office (ILO) says in its annual
Global Employment Trends report (GET) (Note
1).
Based on new
developments in the labour market and depending on the timeliness and
effectiveness of recovery efforts, the report says global unemployment in 2009
could increase over 2007 by a range of 18 million to 30 million workers, and
more than 50 million if the situation continues to deteriorate.
The ILO
report also said that in this last scenario some 200 million workers, mostly in
developing economies, could be pushed into extreme poverty.
“The ILO
message is realistic, not alarmist. We are now facing a global jobs crisis.
Many governments are aware and acting, but more decisive and coordinated
international action is needed to avert a global social recession. Progress in
poverty reduction is unravelling and middle classes worldwide are weakening.
The political and security implications are daunting”, said ILO Director-General,
Juan Somavia.
“The crisis
is underscoring the relevance of the ILO Decent Work Agenda. We find many
elements of this Agenda in current measures to promote job creation, deepening
and expanding social protection and more use of social dialogue”, Mr. Somavia
said. He called on the upcoming meeting of the G-20 on 2 April in London,
alongside financial issues, to urgently agree on priority measures to promote
productive investments, decent work and social protection objectives, and
policy coordination.
The new
report updates a preliminary estimate released last October indicating that the
global financial crisis could increase unemployment between 15 to 20 million
people by 2009. Its key conclusions are as follows:
· Based on November
2008 IMF forecasts, the global unemployment rate would rise to 6.1 per cent in
2009 compared to 5.7 per cent in 2007, resulting in an increase of the number
of unemployed by 18 million people in 2009 in comparison with 2007.
· If the economic
outlook deteriorates beyond what was envisaged in November 2008, which is
likely, the global unemployment rate could rise to 6.5 per cent, corresponding
to an increase of the global number of unemployed by 30 million people in
comparison with 2007.
· In a current worst
case scenario, the global unemployment rate could rise to 7.1 per cent and
result in an increase in the global number of unemployed of more than 50
million people.
· The number of
working poor – people who are unable to earn enough to lift themselves and
their families above the US$2 per person, per day, poverty line, may rise up to
1.4 billion, or 45 per cent of all the world’s employed.
· In 2009, the
proportion of people in vulnerable employment – either contributing family workers
or own-account workers who are less likely to benefit from safety nets that
guard against loss of incomes during economic hardship – could rise
considerably in the worst case scenario to reach a level of 53 per cent of the
employed population.
The ILO
report notes that in 2008, North Africa and the Middle East still had the
highest unemployment rates at 10.3 and 9.4 per cent respectively, followed by
Central & South Eastern Europe (non EU) & the Commonwealth of
Independent States (CIS) at 8.8 per cent, sub-Saharan Africa at 7.9 per cent
and Latin America at 7.3 per cent.
The lowest
unemployment rate was once again observed in East Asia at 3.8 per cent,
followed by South Asia and South-East Asia & the Pacific where respectively
5.4 and 5.7 per cent of the labour force was unemployed in 2008.
The report
shows that the three Asian regions – South Asia, South-East Asia & the
Pacific and East Asia – accounted for 57 per cent of global employment creation
in 2008. In the Developed Economies & European Union region, on the other
hand, net employment creation in 2008 was negative, minus 900,000 which
explains in part the low global employment creation in this year.
Compared
with 2007, the largest increase in a regional unemployment rate was observed in
the Developed Economies & European Union region, from 5.7 to 6.4 per cent.
The number of unemployed in the region jumped by 3.5 million in one year,
reaching 32.3 million in 2008.
According to
the study, sub-Saharan Africa and South Asia stand out as regions with
extremely harsh labour market conditions and with the highest shares of working
poor of all regions. Although the trend has been declining over the past ten
years, around four fifths of the employed were still classified as working poor
in these regions in 2007.
The economic
crisis of 2008 has deepened the concern over the social impacts of
globalization which the ILO had previously raised. Stressing the need to take
measures to support vulnerable groups in the labour market, such as youth and
women, the ILO report observes that a huge labour potential remains untapped
worldwide. Economic growth and development could be much higher if people are
given the chance of a decent job through productive investment and active labour
market policies.
“The Decent
Work Agenda is an appropriate policy framework to confront the crisis. There is
a powerful message that tripartite dialogue with employers and workers
organizations should play a central role in addressing the economic crisis, and
in developing policy responses”, Mr. Somavia said.
The report
lists a number of ILO recommended policy measures being applied by many
governments, as discussed by the ILO Governing Body in November of 2008,
namely:
· i) wider coverage of
unemployment benefits and insurance schemes, re-skilling redundant workers and
protecting pensions from devastating declines in financial markets;
· ii) public
investment in infrastructure and housing, community infrastructure and green
jobs, including through emergency public works;
· iii) support to
small and medium enterprises;
· iv) social dialogue
at enterprise, sectoral and national levels.
If a large
number of countries, using their own accumulated reserves, emergency IMF loans
and stronger aid mechanisms, put in place coordinated policies in line with the
ILO Decent Work Agenda, then the effects of the downturn on enterprises,
workers and their families could be cushioned and the recovery better prepared.
================================================================
To contact the list administrator, or to leave the list, send an email to:
wunrn_listserve-request@lists.wunrn.com. Thank you.