Grim outlook for jobs in short term

The world's advanced economies will suffer a lost decade of jobs growth with more people unemployed for longer and more dropping out of the labour market altogether, a key report has warned.

The International Labour Organisation (ILO) says the risk of social unrest is rising as inequality worsens and unemployment continues to climb, and it will be "a major global challenge for the years to come".

The ILO predicts that employment rates in advanced economies will not return to pre-crisis levels until after 2017, but forecasts that emerging and developing economies will recover sooner, returning to pre-crisis employment levels by 2015.

The annual World of Work report warns that, at a global level, the number of unemployed people will continue to increase unless policies change. Global unemployment is expected to approach 208-million in 2015, compared with slightly over 200-million now.

The report also stresses that key labour market weaknesses that preceded the crisis have "remained acute or worsened". For example, over the past five years, long-term unemployment has increased in almost two-thirds of advanced and developing countries.

"In advanced economies, unemployment spells have lengthened and more workers are becoming discouraged and dropping out of the labour market altogether. This not only has adverse consequences on individuals and their families, but also can weaken previously stable societies, as opportunities to advance in a good job and improve one's standard of living become the exception rather than the rule," the ILO says.

Millions of jobs needed
A combination of jobs destroyed as economic growth faltered and a growing working-age population mean that more than 30-million jobs are needed to return employment to the pre-crisis level of 56.6%.

The report's author, Raymond Torres, says countries need to come up with well-designed employment and social policies to consolidate the gains where a labour market recovery is under way and to kick-start job creation in crisis-hit countries.

Torres sees serious long-term challenges in most countries, noting that a recovery in corporate profitability and stock markets in most countries does not appear to be resulting in strong jobs growth. Instead, unspent cash in the accounts of large enterprises has reached $5-trillion in advanced economies, exceeding pre-crisis levels, and executive pay is also increasing.

"Economic and social inequalities are on the rise and this may affect long-term recovery prospects," says Torres.

"Almost everywhere, young people and women find it difficult to obtain jobs that match their skills and aspirations. It is crucial to ensure that the spectacular advancements in educational attainment among youth in recent years are matched by commensurate decent work opportunities. The risk of social unrest is on the rise in most regions. This is a major global challenge for the years to come." — © Guardian News & Media 2013

Advertisting

Hlophe complaint is an eerie echo

But the new complaint against the Western Cape judge president is also unprecedented

Mabuza contract grows by R10m

Eskom’s negotiators in a R100-million maintenance contract came back with a proposal to push up the costs

‘There were no marks on his neck’, Neil Aggett inquest...

The trade unionist’s partner at the time he was detained at John Vorster Square says she now believes his death was not a suicide

Study unpacks the ‘hidden racism’ at Stellenbosch

Students say they feel unseen and unheard at the university because of their skin colour
Advertising

Press Releases

Boosting safety for cargo and drivers

The use of a telematics system for fleet vehicles has proved to be an important tool in helping to drive down costs and improve efficiency, says MiX Telematics Africa.

Silencing the guns and firearms amnesty

Silencing the guns and firearms amnesty

Gender-based violence is an affront to our humanity

Gender-based violence is an affront to our humanity

UK-Africa investment summit 2020: Think Africa Invest SA

UK-Africa investment summit 2020: Think Africa Invest SA

MTN unveils TikTok bundles

Customised MTN TikTok data bundles are available to all prepaid customers on *136*2#.

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.