ILO urges world leaders, G20 to avert jobs slump, social unrest

The International Labor Organization (ILO) urged world leaders, especially those of the G20 countries – the richest and most industrialized – to avoid another jobs recession and defuse spreading social unrest by restoring credit flows to small firms and “putting jobs back on top of the global agenda." In its World of Work Report 2011 released ahead of the G20 summit, the ILO said “time is of the essence" for action from the G20. “We have a brief window of opportunity to avoid a major double-dip in employment," said Raymond Torres, ILO International Institute for Labor Studies Director. The ILO said that global unemployment is at its highest ever, with more than 200 million worldwide. Current trends indicate that it will take at least five years for employment in advanced economies to hit pre-crisis levels, a year later than what had been earlier projected by the ILO. The report noted that over 80 million jobs need to created in the next two years to restore pre-crisis employment rates but the growth of the world economy indicates that only half of the needed jobs will be created. “A pro-employment approach that centres on cost-effective measures will be instrumental in avoiding a further deterioration in employment. Carefully designed pro-employment programs support demand while promoting a faster return to pre-crisis labor market conditions," the ILO said. “There will be no job recovery until credit to viable small firms is restored," the ILO stressed. It noted that in the European Union, “the net percentage of banks reporting a tightening of lending standards has remained positive throughout 2011, and when firms in the EU were asked about the most pressing problem they faced between September 2010 and February 2011, one-fifth of small firms reported lack of adequate access to finance." The United Nations agency on labor matters said also warned that “(a)s the recovery derails, social discontent is now becoming more widespread… In 40 per cent of the 119 countries for which estimates could be performed, the risk of social unrest has increased significantly since 2010." Increasing labor market spending by one half a percent of the gross domestic income, the ILO said, would increase employment by 0.4 to 0.8 percent, depending on the country. It also recommended investments in the real economy through financial reform and pro-investment measures, as well as the creation of a comprehensive income-led recovery strategy that would stimulate investments and minimize excessive income inequalities. Of the 119 countries that were part of the study, 45 indicated a rise in the risk of social unrest—particularly in advanced economies such as the European Union, the Arab region and to a lesser extent, in Asia. Sub-Saharan Africa and Latin America, meanwhile, had a lower risk of social unrest according to the report. Respondents in half of 99 countries surveyed said that they did not have confidence in their national governments. The G20 heads of state and heads of government will meet on November 3 - 4 in Cannes, France. — BC/ELR, GMA News