ILO: Word Economy Heading Towards Another Job Recession

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Context

The International Labor Organization (ILO) has warned the global economy is heading towards another job recession which may lead to social unrest. In its World of Work Reports 2011, the ILO stated that a declining economy had started to “dramatically affect labor markets.” The organization predicted this could lead to rising social unrest in at least 45 of the 118 countries surveyed. The European Union is also expected to suffer, with many of its nations witnessing negative growth. The EU has been urged to cut interest rates to help stabilize the economy.

The organization for Economic Co-operation and Development (OECD) said that “much of the current weakness is due to a generalized loss of confidence in the ability of policymakers to put in place appropriate responses.” It urged policy makers to take swift action, predicting that it would require 80 million net new jobs over the next two years to get back to pre-crisis employment levels.