Up to 50 Million More Jobs Threatened by Global Crisis

by James Parks, Jan 28, 2009

The ILO predicts worldwide poverty will rise as the global economic crisis worsens.

The global economic crisis could throw as many as 50 million more workers out of jobs worldwide in the next year and lead to a dramatic increase in the number of working poor, according to a new report by the International Labor Organization (ILO).

In its annual Global Employment Trends report, the ILO, an arm of the United Nations, says global unemployment between 2007 and 2009 could rise by 18 million to 30 million workers-and possibly by more than 50 million if the world economy continues to deteriorate. As a result, some 200 million workers, mostly in developing economies, could be pushed into extreme poverty. Click here to download the report.

ILO Director-General Juan Somavia says we are facing a global jobs crisis.

Many governments are aware and acting, but more decisive and coordinated international action is needed to avert a global social recession. Progress in poverty reduction is unraveling and middle classes worldwide are weakening. The political and security implications are daunting.

Somavia called on leaders of the top economic powers who are meeting in London in April to

urgently agree on priority measures to promote productive investments, decent work and social protection objectives, and policy coordination.

The report predicts the global unemployment rate could rise to 6.1 percent in 2009 compared to 5.7 percent in 2007, resulting in an increase of the number of unemployed by 18 million. But if the economic situation deteriorates even further than expected, the global unemployment rate could rise as high as 7.1 percent and result in an increase in the number of jobless of more than 50 million people.

The report also says the number of working poor-people who are unable to earn more than $2 a day may grow to 1.4 billion, or 45 percent of all the world’s employed workers.

The report also found:

• Last year the highest unemployment rates were in North Africa and the Middle East at 10.3 percent and 9.4 percent respectively, followed by Central and South Eastern Europe, sub-Saharan Africa and Latin America.
• While South Asia had one of the lowest unemployment rates at 5.4 percent, it also stood out as one of the regions with the highest shares of working poor.
• In sub-Saharan Africa and South Asia combined, some 80 percent of employed workers were still classified as working poor in 2007.

The report calls for more nations to enact the goals in the ILO’s Decent Work agenda, including increasing coverage of unemployment benefits and insurance; providing skills training for workers; protecting pensions from devastating declines in financial markets; investing in infrastructure, housing and green jobs; and supporting small businesses.

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