The ILO warns in a report published today that stopping measures to stimulate the economy could postpone a jobs recovery for years and render the fledgling economic upturn “fragile and incomplete”. In a stark analysis of the impact of the global recession, the ILO’s World of Work Report 2009m says: "The Global Jobs Crisis and Beyond, also projected that unless adequate measures are adopted and in some cases continued, more than 40 million people could drop out of the labour market."
The research report comes at a moment when governments worldwide are reconsidering whether to continue stimulating the economy or reinstall budget discipline and recuperate earlier made investments made in the economy. Many state and other local government agencies in the US have already announced dismissals or salary reductions, while the upcoming Irish budget budget foresees also billions of euros in cost cutting operations. While in Ireland the principle is undisputed, the ILO urges a continuation of the stimulus measures, rather than starting cost cutting operations now.
From the press release:
“Despite some initial signs of economic upturn and because of the significant rise in unemployment and in part time work, support measures should not be withdrawn too early” said Raymond Torres, Director of the ILO’s International Institute for Labour Studies and lead author of the report.
“The global jobs crisis is not over,” he added. “It is therefore crucial to avoid premature exit strategies. In short, the economic upturn will remain both fragile and incomplete as long as the jobs crisis continues. A real recovery will be achieved only when employment recovers.”
The ILO press release can be found here in English, in Spanish and in French.
The full report is available here.