São Paulo – The director general at the International Labour Organisation (ILO), Guy Ryder, warned on Tuesday (29) that the weak global economic recovery should increase the pressure on unemployment. The executive addressed the topic at the ILO Management Council meeting.
He mentioned International Monetary Fund (IMF) figures regarding global growth. The organisation forecasted expansion of 3.2% this year, but revised projections to 2.9%, the lowest rate since 2010. For 2014, the estimate dropped from 3.8% to 3.6%.
“This review of projections reflects the hardships faced by the main components of developed economies, emerging ones and developing ones. Apart from that, it reflects the difficult situation faced by companies and by workers in the real economy,” said Ryder.
According to him, a series of factors is worsening the world employment situation, among them the high level of unemployment, wage stagnation in several countries, lower private investment than prior to the crisis and the public sector under pressure to cut spending. The forecast is that youth unemployment should remain high in many regions and that informal work should continue rising, contributing to the growth of inequality in many countries, according to Ryder.
He pointed out, however, that several emerging nations have shown greater resistance to crises than before and that some European nations that were greatly affected by the economic crisis should return to growth. “But, fundamentally, there is growing comprehension worldwide regarding the importance of granting greater priority to the strategies focussed on employment,” said Ryder.
*Translated by Mark Ament