Global Unemployment Will Exceed 200 Million this Year
January 24th, 2013
The International Labour Organization (ILO) warns in their latest report, published on Tuesday, that the number of people unemployed worldwide will increase by a further 5.1 million in 2013, to reach over 202 million, despite the moderate rise in production forecast for the 2013-2014 period.
According to Europa Press the report said: “Despite a moderate upturn in production forecast for 2013-2014, it is estimated that the unemployment rate will experience a further increase and that the number of unemployed people in the world will increase by 5.1 million in 2013, to exceed more than 202 million, and by another 3 million in 2014.”
The ILO also warns that those regions that have managed to prevent a further increase in unemployment “have usually experienced a deterioration in the quality of employment, to the extent that vulnerable jobs and the number of workers living below or very close to the poverty line have increased.”
The labour market situation for the world’s youths remains particularly bleak, with almost 74 million people in the 15 to 24 age group unemployed around the world – which represents a 12.6% youth unemployment rate.
Of particular concern is the fact that more and more young people are experiencing long-term unemployment. Some 35% of unemployed youths in advanced economies have been out of a job for six months or longer. As a consequence, increasing numbers of young people are getting discouraged and leaving the labour market.
The UN employment agency believes that the inconsistency between monetary and fiscal measures adopted in different countries, as well as a piecemeal approach to the financial sector and the sovereign debt problems, particularly in the eurozone, have caused uncertainty to harm prospects worldwide.
“An uncertain economic outlook, and the inadequacy of policy to counter this, has weakened aggregate demand, holding back investment and hiring,” said ILO Director-General Guy Ryder. “This has prolonged the labour market slump in many countries, lowering job creation and increasing unemployment duration even in some countries that previously had low unemployment and dynamic labour markets.”
Ryder stressed that policy makers must find coordinated answers to the crisis.
“The global nature of the crisis means countries cannot resolve its impact individually and with domestic measures only,” he said. “The high uncertainty, which is holding off investments and job creation, will not recede if countries come up with conflicting solutions.”
The report said policy makers should also address three interrelated issues: coordinating action to support aggregate demand, in particular through public investment; addressing rising labour market mismatch problems through training and re-skilling programmes; and focusing action on youth joblessness.
Schemes that guarantee employment or training for targeted groups of young people have proven to be successful in some European countries. And they are affordable.
“The costs of inactivity, of allowing long-term unemployment to grow and young people to disconnect further from society, would be far higher,” said Ryder.
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