Perilous Times
31 October 2011 Last updated at 08:13 ET
World economy on verge of new recession
People queue outside an employment office in Seville, Spain The
ILO says the employment situation is already "precarious" around
the world
BBC - The global economy is on the verge of a new and deeper jobs
recession that may ignite social unrest, the International Labour
Organization (ILO) has warned.
It will take at least five years for employment in advanced
economies to return to pre-crisis levels, it said.
The ILO also noted that in 45 of the 118 countries it examined,
the risk of social unrest was rising.
Separately, the OECD research body said G20 leaders meeting in
Cannes this week need to take "bold decisions".
The Organisation for Economic Co-operation and Development said
the rescue plan announced by EU leaders on 26 October had been an
important first step, but the measures must be implemented
"promptly and forcefully".
The OECD's message to world leaders came as it predicted a sharp
slowdown in growth in the eurozone and warned that some countries
in the 17-nation bloc were likely to face negative growth.
'Moment of truth'
In its World of Work Report 2011, the ILO said a stalled global
economic recovery had begun to "dramatically affect" labour
markets.
It said approximately 80 million net new jobs would be needed over
the next two years to get back to pre-crisis employment levels.
But it said the recent slowdown in growth suggested that only half
the jobs needed would be created.
"We have reached the moment of truth. We have a brief window of
opportunity to avoid a major double-dip in employment," said
Raymond Torres from the ILO.
The group also measured levels of discontent over the lack of jobs
and anger over perceptions that the burden of the crisis was not
being fairly shared.
It said scores of countries faced the possibility of social
unrest, particularly those in the EU and the Arab region.
Loss of confidence
Meanwhile, in its latest projections for G20 economies, the OECD
forecast growth in the eurozone of 1.6% this year, slowing to 0.3%
next year.
In May, it had forecast growth of 2% per year in both 2011 and
2012.
It also cut its growth forecasts for the US to 1.7% in 2011 and
1.8% in 2012. It had previously expected growth of 2.6% and 3.1%
respectively.
The organisation called for G20 leaders, who meet on Thursday and
Friday, to act quickly.
"Much of the current weakness is due to a generalised loss of
confidence in the ability of policymakers to put in place
appropriate responses," the OECD said.
"It is therefore imperative to act decisively to restore
confidence and to implement appropriate policies to restore
longer-term fiscal sustainability."
It also called for the eurozone to cut interest rates.