Despite continued rise in unemployment, measures taken by G20 governments will save up to 11 million jobs in 2009, ILO says

The ILO also forecasts that continued labour market deterioration around the world in 2009 would produce an estimated increase in global unemployment of between 39 and 61 million workers relative to 2007,(Note 2) which could result in global unemployment ranging from 219 to 241 million – the highest level ever on record.

“Unemployment remains massive today as a result of the crisis. If the special measures taken are unwound or withdrawn too early, the jobs crisis may worsen even further. For people worldwide, and in particular for the most vulnerable and disadvantaged, the crisis will not be perceived as receding until they get a decent job and a minimum floor of social protection. A jobless recovery would not be socially or politically sustainable”, said ILO Director-General Juan Somavia, who is to attend the summit.

“The G20 Summit in Pittsburgh offers the opportunity to commit continued and enhanced support to employment and social protection measures until such time as private demand can sustain economic recovery as well as employment,” Mr. Somavia said, adding, “Strong economic growth and strong employment growth must go hand in hand. Policies should remain targeted on both objectives simultaneously in order to maximise the potential for growth in jobs in the period of economic recovery.”

The report states that the “Global Jobs Pact” (Note 3) approved in June 2009 by the tripartite membership of the ILO (governments, employers and workers from 183 countries) provides an internationally-agreed set of policy measures designed to reach these objectives.

The previous G20 summit in London in April 2009 called “upon the ILO, working with other relevant organisations, to assess the actions taken and those required for the future” to address the impact of the economic crisis on labour markets.

In the report “Protecting People, Promoting Jobs: A survey of country employment and social protection policy responses to the global economic crisis,” the ILO examined actions taken between mid-2008 and 30 July 2009 in 54 countries, spanning all income levels and regions and involving 32 specific measures grouped under four areas, namely stimulating labour demand; supporting jobs, job seekers, and unemployed; expanding social protection and food security; and applying social dialogue and protecting rights at work. (Note 4)

According to the report, the jobs saved or created as a result of the measures taken by G20 countries amount to between 29 and 43 per cent of the total increase in unemployment in the first half of 2009, meaning that without such measures unemployment would have been that much higher in these countries.

The ILO study found that the six most frequently taken measures included additional spending on infrastructure; subsidies and tax reductions for small enterprises; credit for small enterprises; training programmes and facilities; consultations with employers’ and workers’ organisations; and social protection through cash transfers. These measures correspond closely to the policy options outlined in the Global Jobs Pact.

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Source: ILO