This report highlights a strategy that combines short-term measures such as job-friendly macroeconomic and labor market policies with further action to tackle long-standing imbalances and ensure lasting job recovery.
“The global labour market situation remains uneven and fragile. True, there are encouraging signs of economic recovery in those advanced economies most affected by the global financial crisis which erupted in 2008… However, [this] report found that those economic improvements will not be sufficient to absorb the major labour market imbalances that built up in recent years. First, over the foreseeable future, the world economy will probably grow less than was the case before the global crisis. This complicates the task of generating the more than 42 million jobs that are needed every year in order to meet the growing number of new entrants in the labour market” (p. 9).(Abstractor: Author)

Major Findings & Recommendations

• “If current trends continue, global unemployment is set to worsen further…reaching more than 215 million jobseekers by 2018. During this period, around 40 million net new jobs would be created every year, which is less than the 42.6 million people that are expected to enter the labour market every year. Young people continue to be particularly affected by the weak and uneven recovery” (p. 11). • “Currently stagnant labour market trends are a paradox when viewed alongside trends in corporate profits, which were at an all-time high at the end of 2013…. The rise in corporate profits and inexpensive borrowing did not, however, spark an investment boom in the real economy. Rather, companies have decided to pay ever-larger dividends to their shareholders.” (p. 74).Three key areas for policy focus going forward: • “Address weak aggregate demand through improved labour incomes and less fiscal consolidation” (p.75). • “Address high hiring uncertainty through better policy coordination…Lack of policy coordination—such as fiscal consolidation in an environment of accommodative monetary policy—increases the uncertainty in the real economy. These factors discourage both investment in real capacity and hiring of new workers (see Hall, 2013). Rather, companies prefer to keep vacancies unfilled until they anticipate more stable and lasting demand for their products and services” (79). • “Address inactivity and skills mismatch through active labour market policies…With potential workers remaining out of the labour force and the unemployed experiencing longer spells of joblessness on average, the risk of skills degradation and obsolescence is on the rise” (p. 80).(Abstractor: Author and Website Staff)