Unemployment vs. Unrest
By Dr Arvind Kumar
Recently released annual report of the International Labour Organisation (ILO) has warned of growing social unrest because it fears global employment will not now recover until 2015. However, an earlier estimate of the ILO had reported that the labour market would rebound to pre-crisis levels by 2013. According to broad estimates, about 22 million new jobs are needed — 14 million in rich countries and eight million in developing nations. Cautioning about impending long ‘labour market recession’, the ILO report has observed that social unrest related to the crisis had already been reported in at least 25 countries, including some recovering emerging economies.
According to ILO Director-General Juan Somavia: “Fairness must be the compass guiding us out of the crisis, people can understand and accept difficult choices, if they perceive that all share in the burden of pain. Governments should not have to choose between the demands of financial markets and the needs of their citizens. Financial and social stability must come together. Otherwise, not only the global economy but also social cohesion will be at risk.”
Raymond Torres, lead author of the ILO’s report, has warned governments against withdrawing fiscal stimulus measures while the economic recovery was still weak.
