Global employment situation ‘alarming’ -International Labour
Organization
Narrow focus of eurozone countries on austerity
worsens jobs crisis:
UK: The International Labour Organization (ILO) has warned
that the global employment situation is “alarming” and unlikely to
improve soon. The agency said that austerity measures, especially in
advanced economies, were hurting job creation. The ILO said the
situation was likely to get worse amid slowing global growth and more
people entering the workforce.
High unemployment has been a concern in the US and other major
economies and has hurt the global economic recovery.
“It is unlikely that the world economy will grow at a sufficient pace
over the next couple of years to both close the existing jobs deficit
and provide employment for the more than 80 million people expected to
enter the labour market during this period,” the agency said in its
latest report.
The narrow focus of many eurozone countries on fiscal austerity is
deepening the jobs crisis and could even lead to another recession in
Europe”
The ILO report comes at a time when some of the biggest economies in
the eurozone are having to cut government spending in wake of the
region's ongoing debt crisis.
The agency was critical of the austerity measures taken by Europe's
economies, saying not only had they failed to bring down deficits but
they had hurt economic growth and as a result impacted the jobs market.
Data out last week showed that the unemployment rate in Spain hit a
new record high of 24.4% at the end of March.
Unemployment in France also rose for the 11th straight month during
March.
The ILO warned that unless there was a change in policy direction,
the job market would remain subdued until the end of 2016 and economic
growth in the region may slow further.
“The narrow focus of many eurozone countries on fiscal austerity is
deepening the jobs crisis and could even lead to another recession in
Europe”, said Raymond Torres, the lead author of the ILO report.
However, the agency said that employment rates in developing
economies had recovered much faster and had surpassed pre-financial
crisis levels.
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