ILO bemoans weak outlook for jobs, slow growth

ILO Director-General Guy Ryder

ILO Director-General Guy Ryder
ILO Director-General Guy Ryder

Working population in the G20 countries that is largely populated by youth is no longer enjoying the support of governments, the International Labour Organization (ILO) has said.

In his briefing to G20 Labour and Employment Ministers meeting in Beijing last week, the Director General of ILO, Guy Ryder said: “Continuing sluggish growth, earnings inequality and labour market insecurity are weighing on global aggregate demand and could lead to a self-reinforcing circle of diminished business expectations of market growth, low investment, poor growth and insufficient recovery in the labour market. “

Ryder noted that global Grass Domestic Product (GDP) growth has averaged 3.8 per cent annually in the period of recovery from the 2008 crisis. This was below the trend in the pre-crisis years. In 2015 growth was 3.1 per cent and no improvement is expected for 2016 and 2017.

The Director-General said there was a wide convergence on the understanding of the challenges facing global and G20 economies.He cited among them demographic trends, technological change, continuing globalidsation and intensifying competition, labour demand and supply mismatches, persistent poverty and increasing inequality.

Despite the awareness and subsequent policy responses, Ryder observed that concern about the risk of a slow growth trap is rising.According to Ryder, the post crisis surge in number of young people who are neither in employment nor in education and training has, with some exceptions, yet to be turned around in the majority of G20 nations.

He said that rates range from around 30 per cent or higher in Turkey, India and South Africa but some countries, such as Japan and Germany have managed to reduce rates to less than 10 per cent

He applauded the education and training and support systems many countries have provided for youth, as well as those that have aimed to improve job opportunities.

Noting that many countries have adopted new measures on promoting gender equality including the easing of family responsibilities borne by working women and encouraging female entrepreneurship, Ryder told the Ministers that much work remains to be done to reach the G20 target of reducing gender gaps in participation by 25 per cent by 2025.

Ryder noted that countries were pursuing a range of policies including: measures to increase labour force participation, active labour market policies such as skills development, improved labour market efficiency and inclusivity, accelerating transformation from informal to formal employment, improving job quality, and focusing on the productivity and competitiveness of SME’s.

He highlighted that making growth more inclusive would also support recovery in the pace of growth. Measures to combat working poverty, end discrimination, narrow pay and working conditions gaps and enhance participation of under-represented groups were therefore particularly important.

The ILO Director-General further welcomed the Ministers’ focus on a balanced set of recommendations to G20 Leaders addressing both immediate concerns stemming from slow economic and employment growth with medium to long term structural challenges.Earlier, Ryder had welcomed the commitment of the Ministers to “social dialogue in the formation and implementation of good policies.

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