Oct. 31 (Bloomberg) -- The global job market may not regain its pre-crisis level for at least five years, one year later than previously expected, increasing the potential for social unrest, the International Labour Organization said.
“We have reached the moment of truth,” Raymond Torres, director of the ILO’s Geneva-based International Institute for Labour Studies unit, said in an e-mailed report today. “We have a brief window of opportunity to avoid a major double-dip in employment.”
More than 200 million people globally are out of work, a record high, as almost two thirds of advanced economies and half of developing countries are experiencing a slowdown in employment growth, the group said. While the world needs to create a net 80 million new jobs over the next two years to get employment back to the level before the financial crisis in 2008, the recent weakness in the global recovery means only half that number will be created, according to the ILO.
The report also found that in 45 countries out of 118 analyzed, the risk of social unrest is rising as governments cut spending to reduce budget deficits and tensions mount about a lack of jobs and economic inequality. Areas that showed the greatest potential for disorder include the European Union, the Arab region, and to a lesser extent Asia, the ILO said.
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