Crisis Recovery

The rapid deterioration of the global economy that began in 2007 and expanded across the real economy in 2008 and 2009, affected almost all economic sectors and put increased 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 the factors that led to an employment decline across most sectors, particularly in manufacturing, construction, services and export oriented sectors. The recovery remains fragile and continues to threaten jobs in many public services worldwide. Furthermore, many jobs that remain face increasing demands for labour flexibility and reductions in wages and other social benefits.

As part of the ILO’ response to the global economic crisis, and in line with the priorities established in the Global Jobs Pact, the Sectoral Policies Department (SECTOR) developed a broad range of tools to support ILO’s constituents in monitoring changes at sectoral level and developing policy responses, including:
  • Knowledge and information services to understand and assess the impact of the crisis and the recovery 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, SECTOR will continue to monitor the social impact of economic change and seek opportunities to stimulate social dialogue in sectors with job-rich growth potential to strengthen the recovery process.