International Labour Organization's Report

Date: January 21, 2015

ILO Developing country poverty inequality.unemployment

 World Employment and Social Outlook – Trends 2015 (ILO)

International Labour Organisation (ILO) released a report entittled World Employment and Social Outlook – Trends 2015 , on January 20, 2015.The report says that unemployment will continue to rise in the coming years. The report says that by 2019, more than 212 million people will be out of work, up from the current 201 million.

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Majour Highlights of the report-

• The employment situation has improved in the U. S.and Japan, but remains difficult in other developed economies, particularly in Europe.

• The employment situation has not improved much in Sub-Saharan Africa, despite better economic growth performance. In Arab region, parts of Latin America and the Caribbean the employment outlook has deteriorated.

•  South Asia and Sub-Saharan Africa, accounted for three quarters of the world’s vulnerable employment. East Asia is among the regions that are likely to make the biggest dent in vulnerable employment, which is expected to be reduced in the region from 50.2 per cent in 2007 to 38.9 per cent in 2019. 

• The decline in oil and gas prices may improve the employment outlook somewhat in advanced economies and  Asian countries according to some forecasts.

• Young workers aged 15-24 are particularly hit by the crisis, with a global youth unemployment rate of almost 13 per cent in 2014 and a further increase expected in coming years. By contrast, older workers have fared relatively well since the start of the global financial crisis in 2008.

In developing countries, the middle class now makes up more than 34 per cent of total employment. The biggest progress has been in emerging and low-income countries.

• The report explained growing and persistent inequality and uncertain prospects for enterprise investment, has made it difficult for countries to rebound from the crisis.

• Income inequality in some advanced economies now approach levels observed among emerging economies. By contrast, the emerging economies made some progress in reducing their high levels of inequality.

• The report said income inequality will continue to widen, with the richest 10 per cent earning 30 to 40 per cent of total income while the poorest 10 per cent will earn between 2 and 7 per cent of total income.