World economy on the verge of new jobs recession: ILO

Tuesday, 01 November 2011 03:11

Written by Navid Iqbal

According to ILO (International Labor Organization), the employment situation is shaky around the world.

The global economy is on stage where there is deeper jobs recession and that may set fire to social unrest.

It also said that it may take five years at least for making employment in advanced economies to return from this.

From 118 countries the ILO noted that in 45 countries the risk of social instability was rising.

In another analysis, OECD stated that G20 leaders meeting require taking bold decision.

OECD (Organization for Economic Co-operation and Development) said the plans that are announced by the EU leaders on 26^th October had been a significant initial step but the measures need to be implemented punctually and forcefully.

The message from OECD to world leaders came as the organization predicted a spiky slowdown in the Euro zone’s growth and warned some countries that they are likely to face some negative growth in upcoming days.

'Moment of truth'

In World of Work Report 2011, the ILO stated that a over-involved global economic recovery had affect the labor markets dramatically.

It also said that about 80 million net new jobs may be required over the upcoming two years to get back to past employment levels.

But the organization said that the slowdown in growth recommended that only 50% of the jobs needed would be made.

Raymond Torres from ILO said that they have reached the moment of truth and they have a brief window of occasions to avoid major employment problem.

The group also computed levels of dissatisfaction over the lack of jobs and anger over discernment that the burden of the disaster was not being literally shared.

The group also stated scores of different countries faced the probability of social unrest, mainly those in the EU and in Arab region.

Loss of confidence

In the meantime, ILO’s latest projection for the economies of G20, OECD forecast growth in Europe 1.6 percent this year and next year it slowing to 0.3%.

In May, the group also forecast growth of 2 percent per year in 2011 as well as 2012.

It also cut it development forecasts for the US to 1.7 percent in 2011 as well as 1.8 percent in 2012. It had anticipated growth of 2.6 percent as well as 3.1 percent respectively.

OECD said, “Much of the current weakness is due to a generalize loss of confidence in the ability of policymakers to put in place appropriate responses”.