ILO Says Economic Downturn Could Generate 5 Million More Unemployed

Economic turbulence largely due to credit market turmoil and rising oil prices could spur an increase in global unemployment by an estimated 5 million persons in 2008, the International Labor Organization (ILO) said on Thursday in its annual Global Employment Trends report.

The new projection for 2008 is in contrast to 2007, a watershed year in which sound global GDP growth-of more than 5 percent- led to a “stabilization” of global labor markets with more people in work, a net increase of 45 million new jobs and only a slight increase in the number of people unemployed.

“This year’s global jobs picture is one of contrasts and uncertainty. While global growth is annually producing millions of new jobs, unemployment remains unacceptably high and may go to levels not seen before this year. What’s more, though more people are in work than ever before, this doesn’t mean that these jobs are decent jobs. Too many people, if not unemployed, remain among the ranks of the working poor, the vulnerable or the discouraged,” said ILO

The ILO report warned that an expected slowdown in growth during 2008 could increase the global unemployment rate to 6.1 percent, with a resulting absolute increase of at least 5 million unemployed worldwide.

The ILO observed that the Middle East and North Africa still had the highest unemployment rates at 11.8 and 10.9 percent respectively in 2007.

Source African Press Agency

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