A new report by the International Labour Organization (ILO) says a long “labor market recession” is worsening the social outlook in many countries. The new study, “World of Work Report 2010: From One Crisis to the Next?” shows that three years after the start of the crisis, the world economy has resumed economic growth and some countries have even witnessed encouraging signs of employment recovery, especially in Asia and Latin America.
However, the employment outlook worsened recently, reflecting both the shift to fiscal austerity and the fact that the root causes of the crisis have not been properly tackled. If current policies persist, a recovery in employment to pre-crisis levels will be delayed until 2015 in advances economies, instead of 2013 as it projected one year ago.
The ILO study provides a three-pronged approach for getting out of the crisis:
1. Job-centered fiscal support
2. Income-led growth in emerging economies and other surplus countries
3. Financial reform
The full text of the report is available online.