Global unemployment will rise by 11 million in the next five years, reaching 212 million people, United Nations warned. The latest World Employment and Social Outlook report is gloomy – slower growth and turbulence means more jobless people, which will deepen the increasing income inequality and social unrest.
The United Nations’ labour agency International Labour Organization (ILO) released its latest forecast, which warns that the continuing slowdown in economic growth will cause rising inequality with serious risks to global economics and political stability. The World Employment and Social Outlook – Trends 2015 estimates that by 2019, 212 million people around the world will be unemployed. Currently, unemployment stands at approximately 201 million people and according to ILO director general Guy Ryder, 61 million people have lost their jobs since the start of the global crisis in 2008. And the outlook is gloomy – unemployment will continue to rise until the end of the decade.
The report says that some regional job markets such as the United States and Japan have seen an improvement, but the situation remains difficult in a number of advanced economies, particularly in the European Union. The problem with youth unemployment continues in Spain, where rates exceed 50%. But youth joblessness isn’t the only issue – the richest 10% of the global population earns between 30% and 40% of the total income. The poorest 10%, on the opposite side of the social ladder earn approximately 2% of the total income. This inequality will continue to widen, including in developed countries, where levels are already reaching inequality rates in emerging economies.
According to the report, this gap in income has sparked social unrest, especially in countries where it was declining before the global crisis. However, the increased income inequality will also affect economy growth as low wages make people spend less, while investments are subdued. Young people, particularly women, continue to stay away from the job market in some countries. ILO says that in 2014, nearly 74 million people, aged 15-24, were looking for work.
The steep fall in oil and gas prices will have serious consequences for the labour market in Africa, the Arab world, and in Latin America. Extreme poverty still affects one out of 10 workers globally, who earn less than $1.50 a day. However, the report finds one positive trend – the middle class comprised more than 34% of the total employment in developing countries. In comparison, during the 1980s, the middle class was approximately 20%.
