By Andy Sambidge
International Labour Organisation says current employment growth rates not high enough
The slowdown in the global economy could result in a massive jobs shortfall among G20 members, including Saudi Arabia, by next year, the International Labour Organisation (ILO) said on Monday.
The statistical update prepared by the ILO and the Organisation for Economic Cooperation and Development also said that at current employment growth rates of 1 percent, it won’t be possible to recover the estimated 20 million jobs lost in the G20 since the crisis began in 2008.
“We must act now to reverse the slow-down in employment growth and make up for the jobs lost. It’s absolutely essential to give priority to decent work, and to investment in the real economy, and for this to happen we need determined global cooperation”, said ILO director general Juan Somavia in a statement.
“We need to return to the pledges of Pittsburgh and Seoul and the need to place quality jobs at the heart of the recovery."
The joint ILO/OECD statistical update study said employment would have to grow at an annual rate of at least 1.3 percent to return to the pre-crisis employment rate by 2015.
Such a growth rate would generate some 21 million additional jobs per year, recover jobs lost since 2008 and absorb the increase in the working age population.
However, analysis also expressed concern that employment may in fact grow at a rate of just 0.8 percent until the end of 2012, resulting in a 40 million job shortfall in G20 countries next year and a much larger shortfall by 2015.
A G20 labour ministerial meeting in Paris which started on Monday will discuss the promotion of full employment, quality jobs and the respect for fundamental rights and principles at work, and better policy coherence at the multilateral level.
“We need investments to grow enterprises in the real economy and to generate decent work”, said Somavia.
“Employment creation has to become a top macroeconomic priority. Labour ministries have a key role to play in that respect in preparing for the G20 Summit in Cannes in a few weeks.”
The report added that the overall number of unemployed was still at 200 million worldwide, close to the peak recorded at the depth of the Great Recession.
Either we work and invest and save money and retire early.Or get creative with new products for a steady demand.