The International Labour Organization (ILO) has released some days ago the Global Employment Trends for 2013 available in English HERE. It basically adds to the grim situation highlighting the fact that unemployment has hit a new high with 4 more millions jobless added last year to the crowd, and a very large crowd indeed in some countries.
Not news anymore, the largest pool of unemployed rests not only with developing economies but also with developed countries, the most common example being Spain which has hit a new low with 26.02% of unemployed in the fourth quarter of 2012 and a staggering 55% among youth unemployment.
Five years onwards since the fall of the Lehman Brothers, things are getting worse, the ILO estimating some 197 million jobless in 2012. Despite moderate output growth in some countries and policy reforms implemented some years ago and on their way, the report estimates an increase in the jobless rate over the next years, critical for economic and social stability.
Policy incoherence or reluctance in some areas has led to an increase in sovereign debts, loss of investors and deteriorating job conditions. Job creation is scarce and low quality which clearly points out that the crisis is not over. The report also dwells on vulnerable groups and high unemployment particularly in the euro zone encouraging policy makers to adopt measures targeting “the lost generation” promoting a better linkage between education and job market prospects, youth entrepreneurship and equal rights.
Indeed one of the landmarks of these findings is that relevance of education and qualifications should be proportionate with the job market prospects, a detail that has been overlooked in many countries. It is worth mentioning that even in emerging economies like Romania, policy measures that have been implemented in 2010 do not have a proportionate outcome presently and have still yet to prove effective and efficient.
Unemployment rates are still set on the increase fostering uncertainty and drop in consumption. Such unemployment records should make us think not of “resilient dynamism” but of new economic models encouraging prevention rather than reaction to economic disasters.