BizKnowledge Watch

Austerity measures have not addressed the root causes of the crisis nor have they brought down unemployment, according to a snapshot of EU countries based on an upcoming ILO on the state of global labour markets.

According to the ILO’s snapshot there are over 10 million more jobless people in Europe now than at the start of the crisis. The employment situation has continued to deteriorate since the introduction of fiscal consolidation policies. Following a pause in 2010-2011, unemployment has kept growing and shows no signs of improvement. Over the past 6 months alone, one million people have lost their jobs in the EU.

There are now more than 26 million Europeans without a job, with young and low-skilled workers being the hardest hit. Only 5 EU countries out of 27 (Austria, Germany, Hungary, Luxemburg and Malta) have witnessed employment rates above pre-crisis levels. Countries like Cyprus, Greece, Portugal and Spain have seen their employment rate drop by more than 3 percentage points in the last two years alone.

Read the full report on the web.

(CC) IMF

The International Monetary Fund (IMF) has published the Regional Economic Outlook for the Western Hemisphere, “Shifting Winds, New Policy Challenges.”

According to the REO, Latin America and theCaribbeanis facing a range of challenges from the crisis. Downside risks are significant, with some countries more vulnerable than others. But growth has so far held up reasonably well in the region.

The latest baseline projection is for a modestly lower growth outlook for Latin America and theCaribbeanat 4.5 percent in 2011 and 4 percent in 2012, down 0.1 percentage point from the forecast published in June.

The full REO is available online.

(CC) IMF

The International Monetary Fund (IMF) has just published its latest Regional Economic Outlook (REO) for Europe: “Navigating Stormy Waters.”

Growth inEuropehas slowed significantly, as a result of global shocks, and of the escalation of the euro area sovereign debt crisis, which has shaken confidence and curbed domestic demand.

The REO projects that growth for all ofEuropewill slow from 2.3 percent in 2011 to 1.8 percent in 2012. Downside risks to growth are significant. Most importantly, the projections are predicated on the assumption that strong action will be taken to contain the current crisis.

The report proposes a range of strong actions and policy adjustments – as already witnessed inGreece– to be implemented to restore growth inEurope.

Access the full text here.

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ILO has just prepared a joint study with the OECD at the request of the G20 for its labor ministerial meeting in Paris on September 26-27. The report, titled “Short-term Employment and Labour Market Outlook and Key Challenges in G20 countries,” warns that the slow-down in the global economy could result in a massive jobs shortfall among G20 members by next year.

According to the study, at current employment growth rates of 1 per cent, it won’t be possible to recover the estimated 20 million jobs lost in the G20 since the crisis began in 2008. Employment would have to grow at an annual rate of at least 1.3 per cent in order to return to the pre-crisis employment rate by 2015.

Access the full text here. 

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A new study by the European Financial Marketing Association (Efma) and Roland Berger Strategy Consultants entitled “Retail Banking in CEE – Debt Collection in Times of Crisis” reveals key findings and areas for improvement in debt collection practices across Europe.

The report contains an overview of the recent developments and outlooks in the retail credit business in Central and Eastern Europe (CEE). It compares and assesses the debt collection practice of CEE banks along the main pillars of debt collection identified in this study; describes recent adjustments done by banks in reaction to the crisis and outlines potential areas for improvement.

What’s more, the report provides essential insights into the current practices and possibilities of outsourcing debt collection or selling delinquent debt in CEE countries.

To download the complete report, visit the Roland Berger website.