ILO: World on ‘verge of new jobs recession’

There have been protests against job cuts across the world, including advanced economies in the West [Reuters]

The global economy is on the verge of a new and deeper jobs recession that may further delay the global economic recovery and may ignite social unrest, according a report by the International Labour Organisation (ILO).

The study released on Monday showed that nearly two-thirds of advanced economies, and half of emerging and developing economies, may once again experience a slowdown in employment.

On current trends, it will take at least five years to return employment in advanced economies to pre-crisis levels, the report said. The world unemployment level is at its highest ever level at 200 million people worldwide.

In its study, World of Work Report 2011, the Geneva-based organisation, a specialised agency of the UN, said a stalled global economic recovery will adversely affect labour markets.

It said that 80 million jobs need to be created over the next two years to return to pre-crisis employment levels, but due to the recent slowdown in growth only half of the jobs might be generated.

“We have reached the moment of truth. We have a brief window of opportunity to avoid a major double-dip in employment,” Raymond Torres, director of the ILO’s International Institute for Labour Studies, which issued the report, said.

The study, which was released on the eve of the G20 leaders’ summit in Cannes, France, said that in more than 45 of the 118 countries examined, the risk of social unrest is rising, particularly in advanced economies, notably the EU, the Arab region and to a lesser extent Asia.

The study called for financial reforms and pro-investment measures.