ILO: Global unemployment worsens to 197 million

http://www.gmanetwork.com/news/story/293399/economy/business/ilo-global-unemployment-worsens-to-197-million
Global unemployment numbers worsened to 197 million in 2012, with 39 million dropping out of the labor market due to the lack of job prospects, the International Labor Organization (ILO) said Monday.

In its Global Employment Trends report, the agency blamed the "indecision of [national] policy makers" as being part of the problem.

"Incoherence between monetary and fiscal policies adopted in different countries and a piecemeal approach to financial sector and sovereign debt problems, in particular in the Euro area, have led to uncertainty weighing on the global outlook," it said.

It also pointed to corporations that chose to “increase cash holdings or pay dividends rather than expand capacity and hire new workers.”

The ILO also predicts that despite a "moderate pick-up" in output growth expected in 2013-2014, global joblessness will grow to 205 million by 2014.

And though the global economy is expected to recover, in the medium term growth "will not be strong enough to bring down unemployment quickly," said the report.

"Even with an acceleration of growth, the global unemployment rate is expected to remain at 6 percent up to 2017, not far from its peak level in 2009. At the same time, the global number of unemployed is expected to rise further to some 210.6 million over the next five years," it continued.

The report said that jobs in exporting industries are "particularly vulnerable," as international trade is expected to take a hit from the global financial crisis, and that in several countries the importance of these industries have already declined "by significant margins."

The ILO urged countries to address the skills and education deficiency among the jobless that prevents them from joining or rejoining the workforce.

"Governments should step up their efforts to support skill and retraining activities to address the gaps between demand and supply of work skills and qualifications and to address long-term unemployment," the agency said. — BM, GMA News