|What's the global picture of the job market?
The Global Employment Trends 2014 report said employment growth remains weak, unemployment continues to rise, especially among young people, and large numbers of discouraged potential workers are still outside the labour market.
Profits are being made in many sectors, but those are mainly going into asset markets and not the real economy, damaging long-term employment prospects.
On current trends, an additional 200 million jobs will be created by 2018. This is less than what is required to absorb the growing number of new entrants in to the labour market.
“What is urgently needed is a policy re-think. Stronger efforts are needed to accelerate employment creation and to support enterprises that create jobs,” said ILO Director-General Guy Ryder.
Youth unemployment remains a major concernThe report stressed the pressing need to integrate young people into the labour force. At present, some 74.5 million men and women under the age of 25 are unemployed, a global youth unemployment rate of over 13 per cent – over two times more than the overall global unemployment rate.
|Key facts and figures
$ 1.25 a day – declined by only 2.7 per cent globally, one of the lowest rates over the past decade, with the exception of the immediate crisis years.
Global recovery in labour markets is being held back by a deficit of aggregate demand. In many developed economies, harsh reductions in public spending and hikes in income and consumption taxes weigh heavily on private businesses and households.
|Which policies can help boost employment and productivity?
Unemployment has lengthened considerably, in some countries such as Spain and Greece, jobseekers need twice as much time before landing a new job than before the crisis. And, more and more of those potential workers are discouraged and remain outside the labour force, leading to skills degradation and obsolescence, and rising long-term unemployment, said Ekkehard Ernst, the main author of the report.
|Mismatch, discouragement and active labour market policies
A switch to more employment-friendly policies and rising labour incomes would boost economic growth and job creation, the report says. In emerging and developing countries, it is crucial to strengthen social protection floors and promote transitions to formal employment. This too would support aggregate demand and global growth.
Unemployment by country*
* Unemployment rates may differ from data published by national sources due to differences in coverage and/or definitions. In particular for 2012 and 2013, unemployment rates were estimated by the ILO in case data published by national sources were not yet available at the point of time at which the Global Employment Trends report was prepared. Source: ILO, Trends Econometric Models, October 2013.