This new report by the research arm of the International Labour Organization (ILO) says a long “labour market recession” is worsening the social outlook in many countries.
The new study 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.
However, the report by the ILO’s International Institute for Labour Studies also warns that “despite these significant gains ... new clouds have emerged on the employment horizon and the prospects have worsened significantly in many countries”.
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 labour market recession, the greater the difficulties for jobseekers to obtain new employment,” the ILO report says. “In the 35 countries for which data exists, nearly 40 per cent of jobseekers have been without work for more than one year and therefore run significant risks of demoralisation, loss of self-esteem and mental health problems. Importantly, young people are disproportionately hit by unemployment.”
“Fairness must be the compass guiding us out of the crisis,” said ILO Director-General Juan Somavia. “People can understand and accept difficult choices, if they perceive that all share in the burden of pain. Governments should not have to choose between the demands of financial markets and the needs of their citizens. Financial and social stability must come together. Otherwise, not only the global economy but also social cohesion will be at risk.”