Same policy decisions applied to save banks be applied to save and create jobs-ILO

International Labour Organization (ILO) issued its Report on ‘Global Employment Trends 2010’ and it indicated that unemployment reached highest levels on record in 2009 and Juan Somavia, ILO, Director General calls for the same policy decisiveness that saved banks to save and create jobs.

While stimulus packages have been seen to have worked in terms of averting a much deeper social and economic crisis, the report warns that a 'W' shaped recovery is still possible - in other words the economy could dip again if employment and social protection measures are not in place.

The GET also shows variations at the regional and country levels in terms of the impact of the crisis and labour market recovery. As well as reporting these regional findings the report also provides some country case studies.

Ms Tine Staermose, Country Director, ILO Sri Lanka in a dispatch indicated that the Report was released in Geneva and the Report revealed that the number of jobless worldwide reached nearly 212 million in 2009 following an unprecedented increase of 34 million compared to 2007, on the eve of the global crisis.

Based on IMF economic forecasts, the ILO estimates that global unemployment is likely to remain high through 2010. In the Developed Economies and European Union unemployment is projected to increase by an additional 3 million people in 2010, while it will stabilize at present levels, or decline only slightly, in other regions.

The ILO also said the number of unemployed youth worldwide increased by 10.2 million in 2009 compared to 2007, the largest hike since 1991.

At the same time, the ILO report shows wide variations in the employment impact of the crisis between regions and countries as well as in labour market recovery prospects.

The report says that coordinated stimulus measures have averted a far greater social and economic catastrophe; yet millions of women and men around the world are still without a job, unemployment benefits or any viable form of social protection.

The Report indicated Juan Somavia, ILO Director General as saying that as the World Economic Forum gathers at Davos, it is clear that avoiding a jobless recovery is the political priority of today. They need the same policy decisiveness that saved banks now applied to save and create jobs and livelihoods of people. This can be done through strong convergence of public policies and private investment.

As indicated in the Dispatch Mr Somavia has said that with 45 million young women and men entering the global labour market every year, recovery measures must target job creation for young people.”

According to the ILO, the share of workers in vulnerable employment worldwide is estimated to reach over 1.5 billion , equivalent to over half (50.6 per cent) of the world’s labour force. The number of women and men in vulnerable employment is estimated to have increased in 2009, by as much as 110 million compared to 2008.

The report also says that 633 million workers and their families were living on less than USD 1.25 per day in 2008, with as many as 215 million additional workers living on the margin and at risk of falling into poverty in 2009.

The ILO report says that it is urgent to establish wide coverage of basic social protection schemes to cushion the poor against the devastating effects of sharp fluctuations in economic activity.

- Asian Tribune -