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South Asia farrner plowing rice field |
Global unemployment increased by 5 million people in 2013
The
global labour market situation remains uneven and fragile. True, there
are encouraging signs of economic recovery in those advanced economies
most affected by the global financial crisis which erupted in 2008.
Also,
a number of emerging and developing countries − including: in the
Sub-Saharan Africa − are enjoying relatively robust economic growth. The
world economy may thus be growing somewhat faster than over the past
three years.
However, the report finds that those
economic improvements will not be sufficient to absorb the major labour
market imbalances that built up in recent years. First, over the fore
seeable future, the world economy will probably grow less than was the
case before the global crisis. This complicates the task of generating
the over 42 million jobs that are needed every year in order to meet the
growing number of new entrants in the labour market.
Second,
and more fundamentally, the root causes of the global crisis have not
been prop erly tackled. The financial system remains the Achilles heel
of the world economy.
The state of many banks is such
that many sustainable enterprises, notably small ones, have limited
access to credit, thereby affecting productive investment and job
creation. Significant financial bubbles have re-appeared in a number of
advanced and emerging economies, adding new uncertainties and affecting
hiring decisions.
Also, global labour incomes continue
to increase at a slower pace than justified by observed productivity
gains, thus affecting aggregate demand.
Third; and this
is an important new finding in view of the post-2015 development
debate − little progress is being made in reducing working poverty and
vulnerable forms of employment such as informal jobs and undeclared
work. If confirmed, this trend would unambiguously delay the achievement
of development goals.
To ensure lasting job recovery,
the report highlights the role of a strategy that combines short-term
measures (job-friendly macroeconomic and labour market policies) with
further action to tackle long-standing imbalances.
Such a strategy would strengthen the economic recovery and pave the way for more and better jobs.
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