ILO warns of higher unemployment

Unemployment in the Eurozone could reach almost 22 million over the next four years, a loss of more than 4½ million jobs, without a shift in policy direction This is the conclusion of a report on the Eurozone job crisis released by the International Labour Organization. The report says the consequences of a lengthier labour market recession would be particularly dire for young jobseekers.

The report recommends:

Repairing the financial system conditional on resuming credit to small firms.

Promoting investment and supporting jobseekers, especially for young workers.

Addressing differences in competitiveness between Eurozone countries.

“It is not easy to agree on such a concerted strategy, given the different country positions. However, without a prompt policy turn to regain the trust and support of workers and enterprises, it will be difficult to implement the reforms necessary to put the Eurozone back on a path of stability and growth,” said Raymond Torres, head of the ILO’s International Institute for Labour Studies and lead author of the report.

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