Labor market recession worsens: ILO

KATHMANDU, Oct 2: Long running recession in labor market due to global financial crisis has worsened the prospect of global employment recovery as well as the social outlook in many countries, says a new study by International Labor Organization (ILO).



The report entitled “World of Work Report 2010 - from one crisis to the next?” acknowledges that three years into the crisis, the global economy has resumed growing, with some countries witnessing encouraging signs of employment recovery -- significantly in emerging economies in Asia and Latin America. [break]



However, the report by the ILO´s International Institute for Labor Studies also warned that new clouds have emerged on the employment horizon and the prospects have worsened significantly in many countries despite significant improvement in employment generation.



The ILO study says that, if current policies persist, a recovery in employment to pre-crisis levels will be delayed until 2015 in advanced economies, instead of 2013 as it projected one year ago.



At the same time, the report says, while employment in the emerging and developing countries has resumed growing, over 8 million new jobs are still needed to return to pre-crisis levels in those countries.



“The longer the labor market recession, the greater the difficulties for jobseekers to obtain new employment,” the ILO report says.



“Fairness must be the compass guiding us out of the crisis. People can understand and accept difficult choices, if they perceive that all share in the burden of pain. Financial and social stability must come together. Otherwise, not only the global economy but also social cohesion will be at risk," said ILO Director-General Juan Somavia.



According to the study based on the data from some 150 countries, cases of social unrest related to the financial and economic crises have been reported in at least 25 countries -- many of them in advanced economies.



Many countries that experienced positive growth in employment at the end of 2009 are now seeing a weakening of the jobs recovery, the report adds.



Strengthening job-centered policies, establishing link between wages and productivity and adopting true financial reform allowing saving for productive investment, are the three approaches suggested by the report for getting out of job crisis and achieving better economic crisis.

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