Global economic growth not sufficient to reduce unemployment —ILO •Global unemployment to hit over 201 million

The International Labour Organisation (ILO) has declared that despite a mild pick-up compared to last year, global economic growth in 2017 and 2018 is insufficient to start reducing global unemployment.

Besides, the organisation has projected that global unemployment will increase by 3.4 million in 2017 to reach a level in excess of 201 million; while there will be further increase in youth unemployment to more than 70 million within the year, or one in eight of the global youth workforce.

The ILO Director-General, Guy Ryder made these revelations in a statement to the International Monetary and Financial Committee, at a spring meeting of the World Bank and the IMF in Washington DC on Friday.

According to him, the absence of enough decent work opportunities is dangerously destabilising for economic, social, environmental and political development and jeopardises realisation of the 2030 Sustainable Development Goals (SDGs).

“Despite a mild pick-up compared to 2016, global economic growth is expected to remain below long term trends in 2017 and 2018. Against this background the ILO is projecting that global unemployment will increase by 3.4 million in 2017 to reach a level in excess of 201 million.

“The increase in global unemployment is concentrated in emerging economies and reflects the continuing effects of deep recessions in 2015 and 2016 in several countries,” he said.

Ryder warned that lack of decent employment prospects for youth rings a global alarm, adding that youth unemployment is a major concern in all regions because of the immediate and longer term social and political costs.

“Both the absolute level and the rate of global youth unemployment increased marginally in 2016. The ILO projects a further increase in youth unemployment to more than 70 million in 2017, or one in eight of the global youth workforce. Much of the increase is concentrated in Latin America, the Caribbean and sub-Saharan Africa.

“Furthermore, ILO School to Work Transition Surveys show that in low income developing countries three quarters of young people are only finding work in the informal economy,” the ILO DG said.

Globally, he pointed out that 760 million women and men are working but not able to lift themselves and their families above the $3.10 a day poverty threshold.

He stated that South Asia and Africa, where the age profile is still young, account for three quarters of working poverty.