ILO: Global economy on brink of jobs recession

| October 31, 2011
a�?ILO:

The International Labour Organization (ILO) has warned that the world economy is heading towards a new jobs recession, which could trigger social unrest in some countries.

The recent slowdown in the global economy is a�?dramaticallya�? affecting labour markets and it is expected to take at least five years for employment in developed economies to return to pre-crisis levels, according to its “World of Work Report 2011: Making Markets Work for Jobsa�?.

Raymond Torres, director of the ILO International Institute for Labour Studies, said in a statement: “We have reached the moment of truth. We have a brief window of opportunity to avoid a major double-dip in employment.a�?

Separately, the Organisation for Economic Co-operation and Development (OECD) is urging G20 leaders to take “bold decisions” when it meets for a summit in Cannes later this week, in order to avoid recession.

The OECD’s comment comes as it is forecasting a sharp slowdown in growth in the euro zone, while warning that some nations in the 17-member bloc could face negative growth.

The OECD is predicting growth of 1.6% in the euro zone this year, with a sharp slowdown to 0.3% in 2012.

This is much lower than the 2% growth it predicted for both years in May.

It is also predicting very weak growth in the UK a�� many economists have already slashed growth for the UK.

In the meantime, the OECD has revised growth for the US (the world’s largest economy) to 1.7% this year, down from an earlier estimate of 2.6%.

The Organisation is urging G20 leaders to act quickly to restore confidence a�?and to implement appropriate policies to restore longer-term fiscal sustainability.”

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