ILO warns of serious jobs shortfall by 2015

PanARMENIAN.Net - The slow-down in the global economy could result in a massive jobs shortfall among G20 members by next year, warns the International Labour Organization (ILO), in a joint study prepared with the OECD at the request of the G20 for its labour ministerial meeting in Paris on September 26-27.

The statistical update prepared by the ILO and the Organization for Economic Cooperation and Development also says that at current employment growth rates of 1 per cent, 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. “We need to return to the pledges of Pittsburgh and Seoul 1 and the need to place quality jobs at the heart of the recovery”.

The joint ILO/OECD statistical update study says employment would have to grow at an annual rate of at least 1.3 per cent in order 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, the analysis also expresses concern that employment may in fact grow at a rate of just under one per cent (0.8) until the end of 2012, resulting in a 40 million job shortfall in G20 countries next year and a much larger shortfall by 2015.

The meeting in Paris will bring together the Labour ministers of G20 countries to 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. The ILO Director-General will address the ministers on Monday.

“We need investments to grow enterprises in the real economy and to generate decent work”, said Mr. 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 G20 ministerial will also consider recommendations on social protection contained in a new study prepared by the Social Protection Floor Advisory Group led by former Chilean President and Head of UN Women, Michelle Bachelet. The report argues that the establishment of national social protection floors in every society is a feasible policy option and calls on the G20 to make this a genuine policy priority.

The report also shows how social protection has played a significant role during the crisis in some countries by protecting the poor and other vulnerable people, by helping to stabilize demand for goods and services, and by empowering people to seize economic opportunities. Beyond the crisis, nationally-shaped social protection floors have proven to be an effective tool for reducing poverty and inequality, as well as boosting inclusive and sustainable economic growth