Better Jobs for a Better Economy

Stock.xchngThe ILO has just published the “World of Work Report 2012: Better Jobs for a Better Economy.” The study provides a comprehensive analysis of recent labor market and social trends, assesses risks of social unrest and presents employment projections for the next five years. The report emphasizes that while employment has begun to recover slowly, job quality is deteriorating and there is a growing sense of unfairness.

Moreover, given the pressure on governments to rein in expenditure, policy efforts have focused on structural reforms to boost employment creation. However, if policy instruments are not carefully designed, they could exacerbate the employment situation and aggravate further equity concerns, with potentially long-lasting adverse consequences for both the economy and society.

According to the report, the employment situation is deteriorating in Europe and is no longer improving in many other countries. As a result, the global jobs crisis has entered a new, more structural phase. The worsening situation reflects the austerity trap in advanced economies, primarily in Europe but spreading to other countries.

An alternative approach exists which requires embracing the perception that job-friendly policies have a positive effect on the economy and that the voice of finance should not drive policy-making.

Access the full text online.