ILO warns that financial crises increase world unemployment

T he International Labour Organisation (ILO) has warned warned that the global financial crisis could increase world unemployment from 190 million in 2007 to 210 million people in late 2009.

ILO director-general Juan Somavia cautioned on the organisation’s official website recently that “we need prompt and coordinated government actions to avert a social crisis that could be severe, long-lasting and global”. He warned that the number of working poor living on less than US$1 a day could rise by some 40 million, and those at US$2 a day by more than 100 million.Somavia emphasised that the current crisis would hit sectors such as construction, automotives, tourism, finance, services and property the hardest.”This is not simply a crisis on Wall Street, this is a crisis on all streets.We need an economic rescue plan for working families and the real economy, with rules and policies that deliver decent jobs.We must link better productivity to salaries and growth to employment,” Somavia stressed.According to him, long before the current financial crisis, there were already crises of massive global poverty and growing social inequality, rising informality and precarious work, a process of globalisation that had brought many benefits but had become unbalanced, unfair and unsustainable.He said in order to keep open economies and open societies going, relevant international organisations must begin working together to develop a new multilateral framework for a fair and sustainable globalisation.”Trade talks are stalled, financial markets are on the brink, climate change continues.Any reconstruction will have to find ways to integrate financial and economic, social and labour and environmental policies in a common sustainable developmental approach,” he added.NampaHe warned that the number of working poor living on less than US$1 a day could rise by some 40 million, and those at US$2 a day by more than 100 million.Somavia emphasised that the current crisis would hit sectors such as construction, automotives, tourism, finance, services and property the hardest.”This is not simply a crisis on Wall Street, this is a crisis on all streets.We need an economic rescue plan for working families and the real economy, with rules and policies that deliver decent jobs.We must link better productivity to salaries and growth to employment,” Somavia stressed.According to him, long before the current financial crisis, there were already crises of massive global poverty and growing social inequality, rising informality and precarious work, a process of globalisation that had brought many benefits but had become unbalanced, unfair and unsustainable.He said in order to keep open economies and open societies going, relevant international organisations must begin working together to develop a new multilateral framework for a fair and sustainable globalisation.”Trade talks are stalled, financial markets are on the brink, climate change continues.Any reconstruction will have to find ways to integrate financial and economic, social and labour and environmental policies in a common sustainable developmental approach,” he added.Nampa