Young people are particularly at risk, with the current youth unemployment rate at 22 per cent in the Eurozone, especially in southern countries such as Italy, Portugal, Greece and Spain, with these last two having a youth unemployment rate exceeding 50 per cent.
Fiscal Austerity Measures Detrimental to Employment
The publication points to fiscal austerity measures as being detrimental to employment. “In a depressed macroeconomic context, these reforms are likely to lead to increased numbers of layoffs without any boost to job creation at least until economic recovery gathers momentum,” it states.
The report adds that by embracing a Eurozone growth strategy with jobs at its core, a recovery is still possible within a single-currency setting – however, to do this, austerity approaches need to be abandoned and countries must urgently reform their financial systems.
On 30 May this year, nearly 5,000 delegates kicked off a United Nations forum in Geneva focusing on the global jobs crisis and its impact on youth, as well as social protection and rights at work.
Somavia highlighted, in particular, the impact of the crisis on the world’s young people, noting that “we have been failing our young women and men for some time now.”
“Generally, youth jobless rates are nearly three times that of adults. This is without the many millions worldwide who have become discouraged and stopped looking for work. Furthermore, those who do get a job are likely to be working part time, on temporary contracts, in the informal economy, or precarious work,” he said.
“There is little intergenerational solidarity when the adult generation who formulates policy, lets the young generation carry a heavy share of the burden of the crises.”
- 1.3 billion people earn less than $2 per day, which means poverty for them and their dependents
- More than 2.3 million green jobs have been created in the renewable energy sector in recent years
- Agriculture is still the single largest employer in the world