ILO labour market researchers count on employment policy
According to a report by the Institute for Labour Studies on the employment crisis, which was discussed by the International Labour Organisation (ILO) on 11 July 2012 in Geneva, unemployment in the Eurozone could increase from currently 17.4 million to 22 million affected persons in just four years. However, ILO Director General Juan Somavia indicates that the unemployment problem is not limited to the Eurozone and therefore needs to be addressed internationally by the United Nations, the International Monetary Fund, the World Bank and the G20 with an employment strategy.
ILO labour market researchers reported that policies with a one-sided focus on budget consolidation cannot prevent an increase in long-term unemployment. According to their report on the employment crisis, a growth strategy that focuses on employment instead is recommended.
Support for the unemployed and especially youth without employment is an element that needs to be implemented. They are experiencing great difficulty in developing regular employment relationships at all. On the other hand, further aid for financial institutions is to be linked to issuing loans, mainly to midsize enterprises. The shareholders of banks also need to assume more responsibility.
In its appraisal, the report of the ILO Institute for Labour Studies reaches the conclusion that an extended recession in the labour markets is pending unless coordinated countermeasures are implemented. While southern Europe is mainly affected to date, signs of a recession are increasingly seen in the current growth countries of Germany, Austria, Belgium, Luxembourg and Malta as well.