22 January 2015: Inequalities are predicted to widen as a result of rising unemployment and a slowing global economy, according to the International Labour Organization’s (ILO) ‘World Employment and Social Outlook: Trends 2015.’ The report cautions that rising inequality undermines trust in governments and contributes to a high risk of social unrest, particularly in locations where youth unemployment is high.
Emerging economies made some progress in reducing inequality levels, while income inequality in some advanced economies is approaching levels similar to those in emerging economies, according to the report. ILO Director-General Guy Ryder observed that half of the world’s workers lack access to decent work and basic necessities.
“The jobs crisis is far from over,” said Ryder, noting that over 61 million jobs have been lost since the global crisis began in 2008. ILO predictions suggest unemployment will continue to rise until the end of 2020, with youth, particularly women, continuing to be disproportionately affected, he said.
The report highlights how shifts in employment affect consumption and poverty levels. For instance, as the number of machine assembler and operator jobs has decreased around the world, concerns have risen about the role of manufacturing in helping workers overcome and escape poverty.
The largest source of new jobs will be in private sector services and real estate, according to the report, which predicts that jobs in these sectors will employ more than one third of the global workforce. It also identifies the administration, education and health care sectors as major, and increasing, sources of employment. Employment in manufacturing and the industrial sector is expected to remain stable while employment in the construction sector will decline.
The report also illustrates regional employment trends and structural factors that shape work, such as shifts in skills and an aging population. Highlighted regional trends include: improvements in the US and Japan; remaining challenges in Europe and other advanced economies; deteriorating employment situations in Latin America and the Caribbean; and vulnerabilities in South Asia and Sub-Saharan Africa. [ILO Press Release on Unemployment] [ILO Press Release on Employment Sector Trends] [ILO Press Release on Regional Employment Trends] [Publication: World Employment and Social Outlook: Trends 2015]