‘Massive jobs shortfall’ predicted for global economy

The world's major economies are heading for a "massive jobs shortfall" by the end of next year if governments do not change their tack on policy, the International Labour Organisation (ILO) said in a study published on Monday.

 

In the report, prepared with the OECD for G20 labour ministers meeting in Paris on Monday, the ILO said the group of developing and developed nations had seen 20m jobs disappear since the financial crisis in 2008.

 

At current rates it would be impossible to recover them in the near term and there was a risk of the number doubling by the end of next year, it said.

 

"We must act now to reverse the slowdown in employment growth and make up for the jobs lost," ILO director general Juan Somavia said in a statement.

 

"Employment creation has to become a top macroeconomic priority."

 

The number of people in work in the G20 has risen by 1% since 2010, but 1.3% annual growth is needed to return to pre-crisis employment levels by 2015, the ILO said.

 

"However, employment growth of less than 1% cannot be excluded given the slowdown of the world economy and the anaemic growth foreseen in several G20 countries," the report said. "Should employment grow at a rate of 0.8% until end 2012, now a distinct possibility, then the shortfall in employment would increase by some 20m to a total of 40m in G20 countries."