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Over 200m people worldwide will be unemployed in 2017 - report

Cape Town – The pace of labour force growth in the world outstrips job creation and more than 201 million people are expected to be unemployed globally in 2017, according to a new report by the International Labour Organisation (ILO).

On top of that, persistent high levels of so-called vulnerable forms of employment, combined with a clear lack of progress in job quality – even in countries where aggregate figures are improving – are alarming, according to ILO director general Guy Ryder.

"We need to ensure that the gains of growth are shared in an inclusive manner,” he emphasised.

The report warns that global uncertainty and the lack of decent jobs are, among other factors, underpinning social unrest and migration in many parts of the world.

The global unemployment rate is expected to rise modestly from 5.7% (3.4 million people) to 5.8% in 2017. It is expected that an additional 2.7 million people will become jobless in 2018, according to the ILO’s World Employment and Social Outlook – Trends 2017 (Weso).

“We are 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,” said Ryder.

“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."

READ: Unemployment hits 13-year high

Vulnerable employment

The report shows that vulnerable forms of employment – contributing family workers and own account workers – are expected to stay above 42% of total employment, accounting for 1.4 billion people worldwide in 2017.

According to Steven Tobin, ILO senior economist and lead author of the report, almost one in two workers in emerging countries are in vulnerable forms of employment.

In developing countries, it is estimated to be more than four in five workers. As a result, the number of workers in vulnerable employment is projected to grow by 11 million per year, with Southern Asia and sub-Saharan Africa being the most affected.

The report highlights that the reductions in working poverty are slowing. This endangers the prospects of eradicating poverty as set out in the United Nations Sustainable Development Goals.

The authors of the report estimate that a coordinated effort to provide fiscal stimulus and an increase in public investment - that takes into account each country’s fiscal space - would provide an immediate jump-start to the global economy and reduce global unemployment in 2018 by close to 2 million compared to their baseline forecasts.

However, such efforts should be accompanied by international cooperation.

“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,” said Tobin.

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