Feeds

World heading for massive jobs slump

We need to employ our way out of economic misery

Beginner's guide to SSL certificates

The early signs of another jobs slump are already apparent, according to the International Labour Organisation (ILO).

The body now estimates that employment in advanced economies won't return to levels seen before the global financial crisis until 2016.

“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 International Institute for Labour Studies in a canned statement.

The institute's World of Work Report 2011 concluded:

The latest indicators suggest that the employment slowdown has already started to materialise. This is the case in nearly two-thirds of advanced economies and half of the emerging and developing economies for which recent data are available. Meanwhile, young people continue to enter the labour market.

As a result, approximately 80 million net new jobs will be needed over the next two years to restore pre-crisis employment rates (27 million in advanced economies and the remainder in emerging and developing countries). However, in light of the recent economic slowdown, the world economy is likely to create only about half of those much-needed jobs.

It also warned that widespread unemployment, and the perception that the burden of the crisis was being borne unevenly, were contributing to social unrest in a number of countries:

In 40 per cent of the 119 countries for which estimates could be performed, the risk of social unrest has increased significantly since 2010. Similarly, 58 per cent of countries show an increase in the percentage of people who report a worsening of standards of living. And confidence in the ability of national governments to address the situation has weakened in half the countries.

As employment gets worse and more people get worried about their job and wage security, household spending is falling so less money is pouring into the economy, stalling recovery further.

If countries want to break this vicious circle, they're going to have to focus on jobs as one of the key drivers of recovery instead of "appeasing financial markets", the ILO said.

The report added:

Strikingly, while most countries now have fiscal consolidation plans, only one major advanced economy - the United States - has announced a national jobs plan. Elsewhere, employment policy is often examined with a fiscal lens.

The ILO added that, despite this focus on the financial sector, regulation "remains inadequate".

You can read the full report here. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.