BASSETERRE, St. Kitts –UNLESS decisive measures to support employment are taken and sustained, genuine recovery with employment will be unnecessarily delayed. This is according to recent research carried out by the International Labour Organization (ILO).
The ILO’s World of Work Report 2009: The Global Jobs Crisis and Beyond, was released this week and it assessed the measures put in place by countries to support their economies in the wake of an economic and financial crisis. In its analysis of the impact the global recession has had on such countries, the report warns that some 40 million people stand at risk of losing their jobs if “adequate measures” are not adopted.
When signs of a recovery began showing in the third fiscal quarter of 2009, concerns were raised as to how soon governments and policymakers should begin preparing to end stimulus packages and exit their crisis-response modes.
In the ILO release, Director of International Institute for Labour Studies and lead author of the report Raymond Torres said the signs of recovery should not stand alone, but rather should be assessed in the context of increased unemployment resulting from the crisis itself.
“Despite some initial signs of economic upturn and because of the significant rise in unemployment and in part time work, support measures should not be withdrawn too early.”
“The global jobs crisis is not over. It is therefore crucial to avoid premature exit strategies. In short, the economic upturn will remain both fragile and incomplete as long as the jobs crisis continues. A real recovery will be achieved only when employment recovers,” Torres explained.
The report indicates that most of the failures of financial systems after the crisis have not yet been dealt with. It further recommended bringing persons back into productive employment soon, as it would be “less costly for the public purse” than to take action at a later time.
According to the ILO release, the global market can anticipate a seven percent increase in employment if fiscal stimulus measures are continued and are focused on job creation – an increase that cannot be expected in the context of an early exit situation.
The ILO adopted its ‘Global Jobs Pact’ earlier this year, which presents an integrated portfolio of “tried and tested” policies, placing employment and social protection at the centre of crisis responses.
The job pact has received worldwide support since its adoption and according to the ILO report, “the length and scope of the jobs crisis could be reduced if stimulus measures and overall policies were focused on its approach”.
