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Global unemployment to rise by 3.4 m in 2017: ILO

Our Bureau New Delhi | Updated on March 12, 2018 Published on January 12, 2017

The ILO report had some praise for India, where, it said, the “majority of new employment was created” in 2016.

Global unemployment is expected to rise by 3.4 million in 2017 despite a likely modest pick-up in economic growth at 3.4 per cent this year and 3.6 per cent in 2018, against a six-year low of 3.1 per cent in 2016, says a new report by the International Labour Organisation.

Expressing concern over the “inability” of the economy to generate enough jobs following subdued private investments and trade flows, the report “World Employment Social Outlook: Trends 2017” also projected a growth in the number of workers in vulnerable forms of employment by 11 million a year.

At present, South Asia and sub-Saharan Africa are the two regions most affected by vulnerable employment.

Noting a rise in its Social Unrest Index that seeks to reflect discontent with the socioeconomic situation in countries, the report said: “Average global social unrest increased between 2015 and 2016. In fact, between 2015 and 2016, eight out of 11 regions experienced increases in the measure of social discontent, most notably in the Arab States.”

The ILO report had some praise for India, where, it said, the “majority of new employment was created” in 2016. South Asia had created most of the new employment, with employment expanding by 13.4 million in 2016, underpinned by population-driven labour force growth, it added.

However, it projected unemployment levels to rise by 450,000 in 2017 in developing countries, with unemployment rates hovering at around 5.5 per cent in 2017 and 2018, while also pointing out that forecasts for growth for 2017 have “continually been revised downwards.”

Calling upon governments to have the “right policy mix”, the report, among other things, called for an increase in public investment, which in the medium term might help remove fears of low growth and, thereby, raise investment demand.

Published on January 12, 2017
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