ILO warns thats unemployment may rise to 208 million by 2015

A new report released yesterday by the International Labour Organisation, ILO, shows that the number of unemployed persons in the world could rise to 208 million by 2015.

According to the World of Work report released in Geneva, Switzerland, the ILO revealed that global unemployment was expected to hit 208 million in 2015, a rise from the current 200 million unemployed people across the world”.

The report also added that “long-standing labour market imbalances, such as high levels of labour market informality in developing countries and long-term unemployment in advanced economies, will remain acute”.

In Nigeria where unemployment is on the increase, the ILO suggested that to check the trend, countries could benefit from well-designed social protection and a boost of labour income.

The report entitled, “repairing the economic and social fabric”, recommended “ Investment in key infrastructure projects, along with measures to facilitate the transition to formal employment and to expand well-crafted social protection and minimum wages that would help to further that objective”.


 
The report added that “Such policies would not only boost growth now, but would also consolidate the emergence of a large and growing middle-income group –which is essential for ensuring genuinely autonomous economic growth”.

Relating minimum wage to unemployment, the ILO report stated that “ About half of the 151 countries for which data are available do not have a comprehensive system of minimum wages. And, in those countries where minimum wage legislation does exist, stronger action is often needed to improve compliance.”.

It noted also that “ Well-designed systems of minimum wages can provide an effective income floor for both formal and informal workers. They can also provide an incentive to unlock low productivity traps and, combined with social protection floors, can contribute to enhancing the capabilities of low-income women and men”.

The ILO report stated that “ Too low a level reduces the relevance of minimum wages; too high a level runs the risk of firms refusing to comply. Importantly, the report highlights the point that regular updates and the engagement of workers’ and employers’ organizations in minimum wage setting are crucial to leveraging the benefits of minimum wages and ensuring that they pave the way for decent work opportunities”.

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