80 million jobs need to be created over next 2 years for global employment to return to pre-crisis levels according to World of Work Report 2011: Making markets work for jobs, The cooling global economy risks pushing the world into a double-dip jobs recession and triggering an outbreak of social strife unless governments take urgent action to stimulate employment growth. Austerity Measures Complicating Weak Private Sector Picture for Jobs: The International Labor Organization (ILO) notes that while private enterprises are in an even weaker position to retain employees since the start of the financial crisis, austerity measures implemented by governments have contributed to the growing numbers of unemployed. “We have reached the moment of truth,” said Raymond Torres, Director of the ILO’s International Institute for Labour Studies, which issued the Report. “We have a brief window of opportunity to avoid a major double-dip in employment.” We have noted on several occasions our concern that austerity measures where ill-timed and could backfire. The IMF has now turned around the focus of its recommendation; however it had been seen as an advocate of fiscal austerity only earlier this mid-summer. Longer Timeframe to Return Employment to Pre-Crisis Levels. The Report points out that at the current rate, it would take at least five years for employment in developed countries to return to pre-crisis levels – one year longer than projected in last year’s report. I also wonder to the degree that the nature of work or employment has actually been fundamentally altered. There is work; however jobs are no longer provided with same commitment of employment security and benefits. (READ - diplomaticallyincorrect.org/films/blog_post/there-is-work-but-no-jobs-money-flash-by-ambassador-mo/38809 ). This can be especially unsettling for countries where public sector health and other benefits are limited or dependent on employers, as in the US. New “Social Unrest” Index Highlighting Discontent re Perceived Economic Inequality: In a new addition, the annual study features a ‘social unrest’ index highlighting global levels of discontent related to perceived economic inequality. Marking an uptick in popular anger in advanced economies such as those of the European Union, the report warns of a “significant aggravation of social unrest” in over 45 of the 118 countries surveyed. “As the recovery derails, social discontent is now becoming more widespread,” the report’s authors warn, noting public dissatisfaction is also simmering in the Middle East and North Africa. There is a vicious cycle at work – lower employment security drags down consumer confidence which then drags down work/job opportunities. However, the Report does propose methods to reverse the negative cycle – it calls on governments to resist cuts in social programs. It notes that an increase in active labor market spending by 0.5% of gross domestic product (GDP) would increase employment by between 0.4% and 0.8%, depending on the country. By Ambassador Muhamed Sacirbey

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