Economic recovery strategies must prioritize job creation, says UN labour agency

Although the global economy is on the cusp of a fragile recovery, governments must take concerted action to create jobs to spur growth and development, according to the heads of the United Nations International Labour Organization (ILO) and the International Monetary Fund (IMF).

“A job-centred growth strategy should be our number one priority,” said ILO Director General Juan Somavia, ahead of a high-level conference on 13 September in Oslo. “Otherwise, the economic recovery may take years to reach those who need it most, or it may not reach them at all.”

The joint ILO-IMF summit, hosted by Norwegian Prime Minister Jens Stoltenberg, will explore ways to forge a sustainable, job-rich economic recovery.

Two years after the world was plunged into a recession, unemployment remains at record highs in many countries, with the ILO estimating that 30 million more people are out of work today than in 2007. There is little indication that unemployment rates will fall in the near future.

The ILO and IMF are coming together in a bid to stimulate discussion of global cooperation and policy innovations to promote job growth and social cohesion.

“The Great Recession has created a painful legacy of unemployment and this devastation threatens the livelihood, security and dignity of millions of people across the world,” said IMF Managing Director Dominique Strauss-Kahn.

“The international community must rise to meet this challenge,” he continued. “Now is the time for our collective action.”

The two organizations have issued a background paper ahead of the gathering in the Norwegian capital, which is expected to be attended by President Ellen Johnson Sirleaf of Liberia, Prime Minister George Papandreous of Greece and Prime Minister José Luis Rodriguez Zapatero of Spain, among others.

“The scars of this distress in labour markets could last for a very long time – in the case of young workers unable to get their first job, a lifetime,” the document cautions. “Political, community, business and labour leaders all over the world are asking for answers to the threat of a slow jobless recovery. And they want to know that recovery can transition into strong, sustainable and balanced growth.”