UN labour organization says global employment seriously lagging economic growth

In contrast to world economic growth of 5 per cent, world employment has only grown by 1.67 per cent in 2004, a situation that is not politically, socially and economically sustainable, according to the United Nations International Labour Organization (ILO).

Though global trade and foreign direct investment (FDI) have increased, they have failed to produce the employment and intensive growth needed to reduce unemployment and poverty, Director of the ILO office for the UN Djankou Ndjonkou yesterday told the Second Committee of the General Assembly dealing with economic and financial matters. “This demands a global response, but it is essential that acute attention be given nationally” he added.

Mr. Ndjonkou recommended that nations place decent work at the heart of global, national and local strategies, and ensure through structural changes that jobs grow when investments and national output do, for example by creating programmes for small businesses which often create the most jobs. He emphasized the importance of South-South cooperation, to build stronger links between developing nations, and to help prevent labour abuses.

Decent work for all, while being the “key to poverty reduction” will also create greater economic and social stability during economic crises, he said.

The Geneva based, ILO also issued a report detailing its expertise in socially-responsible and effective downsizing. Whether taking place in an up or down economy, the report describes a model for firms undergoing downsizing called “Socially Sensitive Enterprise Restructuring (SSER).”

The model is based on an actual case of the South African Breweries (SAB) who when downsizing in the 1990’s, in conjunction with the Food and Allied Workers Union (FAWU) provided voluntary administrative, business and psychological support to workers losing their jobs. The model includes a business incubator, which has been responsible for spawning 100 new companies since then.

“Restructuring goes smoothly if it is based on a joint agreement between employers, workers, and in some cases, government,” Senior Specialist at the ILO and editor of the new publication, Nikolai Rogovsky said.