Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

FASHION

Jean-Marc Loubier, bags and shoes.

Read more

ENCORE!

Hip-hop musician Beat Assailant on mixing the sounds of the city

Read more

  • Bouteflika, the ghost president

    Read more

  • Algeria's ailing Bouteflika clinches fourth term amid fraud claims

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Police arrest S. Korea ferry captain for negligence

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • World honours Garcia Marquez’s magical literary legacy

    Read more

  • Ukraine: ‘One bloody incident could scupper Geneva deal’

    Read more

  • Top Hollande adviser resigns over conflict of interest accusation

    Read more

  • Indian election: Votes for sale

    Read more

  • West African Ebola outbreak caused by new strain of virus

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • Video: Tensions remain high in Mariupol despite Geneva deal

    Read more

  • In Prijedor, survivors fight to keep memory alive

    Read more

  • Deadly avalanche strikes Everest in worst-ever disaster

    Read more

  • With a strong French presence, veterans and fresh faces, Cannes aims to please

    Read more

  • Russia and West agree on steps to ease Ukraine crisis

    Read more

  • Mob launches deadly attack on UN shelter for S. Sudan civilians

    Read more

  • Eurostar train mishap causes 'severe' delays

    Read more

  • Chelsea Clinton announces she's pregnant

    Read more

  • French troops free five aid workers kidnapped in Mali by Islamists

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

  • After cup defeat, Spanish pundits read last rites for Barcelona

    Read more

  • India heads to polls in single largest day of voting

    Read more

Europe

Unemployment could hit 22 million in eurozone, says UN

©

Text by News Wires

Latest update : 2012-07-12

The International Labor Organisation warned Wednesday that unemployment will rise to almost 22 million in the next four years across the 17 countries sharing the euro, unless more is done to help small firms and youth.

AP - Unemployment could rise to almost 22 million in the 17-nation eurozone over the next four years unless European nations provide more help for small firms and the millions of youth struggling to find work, the U.N. labor office said Wednesday.

The International Labor Organization said in a new report that a focus on job creation could avert the loss of another 4.5 million jobs on top of the current 17.4 million unemployed. But the Geneva-based organization concluded it would require a quick, major policy shift “out of the austerity trap” by all the 17 countries that use the joint euro currency.

The sustainability of the European monetary union has been called into question by high government debt, high borrowing costs and tough negotiations over bailouts and spending cuts.

But a raging debate has erupted this spring over whether austerity measures mandated by the EU and its single-biggest economy, Germany, are doing more harm than good by stunting growth in some of the indebted eurozone nations. France’s election of Socialist Francoise Hollande as its new president in May was seen as a rejection of austerity policies.

ILO Director-General Juan Somavia said the eurozone is undergoing its worst jobs crisis since the creation of a single currency in 1999. And with the rate of youth unemployment exceeding 50 percent in some countries, he said, any worsening of the situation would add to social unrest and further erode confidence in financial systems and governments.

“The report shows that by embracing a eurozone growth strategy with jobs at its core, the recovery is still possible” without any breakup in the currency union, he said. “But the window of opportunity is closing.”

The ILO’s prescription for recovery focused on repairs to financial systems, such as boosting banks’ solvency, making credit easier to obtain for small enterprises and putting in more youth training and school-to-work programs such as those in wealthy nations like Austria and the Netherlands.

But the ILO said one of the biggest challenges for the eurozone remains its focus on traditional policies that he predicted would only exacerbate the widespread problem of not enough jobs. The report noted labor markets still have not recovered from the global financial crisis of 2008-2009 - even now there are still 3.5 million fewer jobs than before that crisis.

Even more alarming, the Geneva-based U.N. agency noted, employment has fallen since the start of this year in half of the eurozone nations after a modest recovery in 2010 and 2011. By May, the unemployment rate in the eurozone had risen to an all-time peak of 11 percent.

On Tuesday, the 34-nation Organization for Economic Cooperation and Development also said current weak economic recovery will keep unemployment rates in OECD countries high at 7.7 percent until at least the end of 2013.

It said young people and low-skilled workers were enduring the worst of it and about 14 million jobs would need to be created in the OECD area - advanced economies spanning Europe, North America, Asia and emerging countries like Chile, Turkey and Mexico - to get employment rates back to pre-crisis levels.

Date created : 2012-07-11

  • EUROZONE

    Eurozone unemployment hits record high

    Read more

  • ECONOMY

    Worldwide unemployment rate rising, says ILO

    Read more

  • EUROZONE

    Eurozone jobless rate hits new high ahead of EU talks

    Read more

Comments

COMMENT(S)