Covering the global economic crisis

The rapid deterioration of the global economy has expanded across the real economy, hitting almost all productive sectors and increasing pressure on government revenues in both developed and developing countries. Limited access to financing and credit, volatile commodity prices, the abrupt contraction of aggregate demand and, consequently, the sharp fall in exports and foreign direct investment are, among others, the factors that have led to an accelerated decline in employment in manufacturing, services and export oriented sectors, and are threatening jobs in many public services worldwide. Furthermore, the jobs that remain are facing increasing demands for labour flexibility and reductions in wages and other social benefits.

As part of the ILO-wide emergency response to the global economic crisis, the Sectoral Activities Department (SECTOR) brought together governments, employers’ and workers’ organizations along with other experts to examine how best to address immediate concerns, as well as the longer term challenges facing those working in the most affected sectors such as construction, financial services and the automotive industry.

In the context of the principles and actions outlined in the Global Jobs Pact, SECTOR provides to ILO’s constituents a broad range of policy options and tools in three areas:

• Knowledge and information services to understand and monitor the impact of the crisis at sectoral level;
• Promotion of tripartite social dialogue in major economic sectors to mitigate the adverse effects of the crisis at global, regional and national levels; and
• Technical assistance for the formulation and implementation of recovery action plans at sectoral level.

As the economic outlook evolves, the Office will continue to monitor the social impact of economic change and seek opportunities to stimulate social dialogue in sectors with job-rich growth potential and to strengthen the recovery process.

Contact address for more information