The United Nations International Labour Organisation (ILO) released its 2017 World Employment and Social Outlook report, which finds economic growth trends lagging behind employment needs and predicts both rising unemployment and worsening social inequality throughout 2017.
Highlights of the report:

• The number of unemployed people in India is expected to rise by 1 lakh in 2017 and another 2 lakh in 2018.
• The number of jobless will increase from 17.7 million in 2016 to 18 million by 2018 even though the country’s unemployment rate is expected to go down from 3.5 per cent to 3.4 per cent in 2017.
• The global unemployment rate is expected to rise modestly from 5.7 to 5.8 per cent in 2017 as the pace of labour force growth outstrips job creation.
• Economic growth continues to disappoint and underperform – both in terms of levels and the degree of inclusion. This paints a worrisome picture for the global economy and its ability to generate enough jobs, let alone quality jobs.
• Vulnerable forms of employment, which include contributing family workers and own account workers, are expected to stay above 42 per cent of total employment.
• About 1.4 billion people are likely to be engaged in such employment in 2017, with the number rising by 11 million per year, with Southern Asia and sub-Saharan Africa being the most affected.
• In fact, almost one in two workers in emerging countries are in vulnerable forms of employment, rising to more than four in five workers in developing countries.
• The number of workers earning less than $3.10 per day is even expected to increase by more than 5 million over the next two years in developing countries. Global uncertainty and the lack of decent jobs are, among other factors, underpinning social unrest and migration in many parts of the world.

Asia-Pacific region

• Asia Pacific region, with nearly 60 per cent of the global workforce, saw net employment rise by over 20 million (or 1.1 per cent) in 2016, and a similar expansion is anticipated in 2017.
• Southern Asia has created most of the new employment, with employment expanding by 13.4 million in 2016, underpinned by population-driven labour force growth. The majority of this new employment was created in India.
• Manufacturing growth has underpinned India’s recent economic performance, which may help buffer demand for the region’s commodity exporters.

Analysis:

• World is facing the twin challenge of repairing the damage caused by the global economic and social crisis and creating quality jobs for the tens of millions of new labour market entrants every year.
• The increase in unemployment levels and rates in 2017 will be driven by deteriorating labour market conditions in emerging countries – as the impacts of several deep recessions in 2016 continue to affect labour markets in 2017.
• The ILO advocates policy approaches that address root causes of secular stagnation as well as structural impediments to growth.
• Boosting economic growth in an equitable and inclusive manner requires a multi-faceted policy approach that addresses the underlying causes of secular stagnation, such as income inequality, while taking into account country specificities. Such progress, the ILO emphasised, is only possible through international cooperation. A coordinated effort to provide fiscal stimuli and public investments would go a long way to provide an immediate jump start to the global economy and could eliminate an anticipated rise in unemployment for two million people.