Global Employment Trends
The International Labour Organization has released its annual Global Employment Trends report.
The International Trade Union Confederationâ€™s response follows:
ILO Report Shows Job Market Still in Crisis
Brussels, 25 January 2011: Todayâ€™s Global Employment Trends report from the International Labour Organization (ILO) confirms that, despite improvements in many economic indicators, global unemployment remains at crisis levels.
â€œThe job market is by far the most important part of the economy and the ILOâ€™s report underlines the severity of world unemployment,â€ said ITUC General Secretary Sharan Burrow. â€œThe fact that more than 205 million workers remain unemployed is of major concern, and tackling this crisis must be the primary focus of economic policy.â€
The global unemployment rate barely edged down from 6.3% in 2009 to 6.2% in 2010. Today’s report projects 6.1% in 2011, which is still significantly above the pre-crisis rate of 5.6%. The youth unemployment rate is more than twice as high, with employment not keeping up to population growth. The report indicates that the worldwide ratio of employment to population fell between 2009 and 2010.
The ITUC applauds the ILOâ€™s conclusion that â€œit is crucial to maintain or enhance measures that can help boost employment generation and jump-start a sustainable jobs recovery. Improved labour market outcomes would support a broader macroeconomic recovery and could help offset the adverse effects of fiscal consolidation.â€
However, the ITUC takes issue with the reportâ€™s assertion that, in developed countries, â€œPolicies are needed to boost labour productivity in order to reduce unit labour costs and enhance competitiveness.â€
The labour movement strongly supports boosting productivity, but believes that wages should rise along with it. Unions reject the goal of reducing unit labour costs because it means that wages fail to keep pace with productivity.
â€œHigher wages and more consumer demand should be the basis for sustainable growth,â€ said Burrow. â€œThe way to address global trade imbalances is through a larger expansion of purchasing power in developing countries, not for developed countries to enter a competitive race to the bottom.â€
â€œThe way to address global trade imbalances is through a larger expansion of purchasing power in developing countries, not for developed countries to enter a competitive race to the bottom.â€
That horse already bolted no?
Yes, but new races keep being run.
That would appear to be correct as the full court press on CIT cuts is in full-swing.
Hurray up Travis and get that damn book finished would you! The solution, seemingly as Krugman has been going on about, is the demand problem. But as Travis states, it is at the global level that we have a demand problem. Poverty embraces the world, there is not shortage of demand- personally I just do not see how the economists of the world do not see this elephant sitting in the room.
It makes me sick to my stomach, somehow thinking that we have all these production problems and competitiveness issues, damn just address poverty both inside and outside developing countries and one will have a solution. A careful approach that is sustainable and we will have solutions to this global mess- what is so difficult??????????
Finish that book Travis.
OK by the end of May I promise. Then two years to publication. That should have the austerians on the ropes in a developed world full of stagnation. The UK just went-0.5%.
Hey a book sounds useful Travis. Send around the proofs!