Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 590 Wed. January 25, 2006  
   
Business


Global economic growth fails to dent unemployment: ILO


The number of people out of work worldwide climbed to new heights in 2005, as economic growth failed to offset a rise in the total seeking jobs, the International Labour Organisation said Tuesday.

The global figure for jobless workers reached 191.8 million by the end of last year, an increase of 2.2 million on 2004.

That represented an unemployment rate of 6.3 percent, unchanged from the previous year and marking the end of a two-year decline, said the ILO in its annual study of international job trends.

While the total number of people in work reached a high of 2.85 billion, global economic growth of 4.3 percent did little to dent the jobless total, the ILO said.

The UN agency said that only around 10 million jobs are currently created per percentage point of economic growth, and that the prospects for this year appear little better.

"If we see a weak 2006, this will have a negative impact on employment growth," said the ILO's chief analyst Jeff Johnson.

"As the population grows, we're not creating enough jobs as it is to keep up with the levels we have. What we need is stronger growth that is more employment-creative, or employment-intensive," Johnson told reporters.

Almost half the world's unemployed are aged 15-24, the ILO said.

It added that this was "troublesome," because young people make up only a quarter of the working-age population.

The ILO also highlighted regional variations.

Latin America and the Caribbean saw a rise in unemployment, with the jobless rate increasing from 7.7 percent from 7.4 percent in 2004.

In the former Soviet Union and other ex-communist nations -- except those which joined the European Union in 2004 -- it rose to 9.7 percent from 9.5 percent.

Developed economies, including the EU, saw rates drop from 6.7 percent from 7.1 percent.

There was little change in Asia, the ILO said.

East Asia's rate of 3.8 percent remained the lowest in the world, while South Asia's stood at 4.7 percent and Southeast Asia and the Pacific at 6.1 percent.

The Middle East and North Africa remained the world's unemployment hotspot, at 13.2 percent. Second was Sub-Saharan Africa, at 9.7 percent.

The ILO also pointed to concerns for those who do have jobs.