The present global economic scenario is leading to a slowdown in employment generation which will further delay the recovery and may aggregate social unrest in different countries. A stalled global economic recovery has also begun to affect labour markets. The world employment outlook is grim as the unemployment stands at more than 200 million worldwide. It is notable that two-thirds of advanced economies and half of emerging and developing economies are once again experiencing a slowdown in employment. – The global economic crisis is expected to lead to a dramatic increase in the number of people joining the ranks of the unemployed, working poor and those in vulnerable employments.
Despite a sharp rebound in economic growth for many countries, global unemployment in 2011 has been remain at the record highs of the past three years, highlighting the need for long-term policies that prioritize quality job creation. A narrow focus in developed economies on reducing fiscal deficits without addressing the challenge of job creation has further weaken employment. If we look up the latest figures of unemployment rate, it shows that unemployment is consistently increasing.
U.K. unemployment jumped in the third quarter as the number of young people looking for work climbed above 1 million for the first time in at least 19 years. Germany’s unemployment hit a two-decade low as the jobless rate across the euro zone reached a record high. Economists say that as long as any global downturn is mild, German unemployment will stay low as companies hold onto existing workers. France’s jobless rate remained at 9.8% for a fifth straight month in October 2011, while Italy’s rose 0.2 percentage point to 8.5%.To be classified as unemployed, a person must be over the age of 15, without a job, or stood down from a job without pay, but be actively seeking full-time or part time work.
Unemployment causes a loss of human capital as the unemployed don’t contribute skills and experience to the workforce. The depreciation in unemployed human capital and increased duration of unemployment escalates this rate of unemployment. As the world continues to struggle to forge a sustainable recovery from the global economic and jobs crisis, people across the globe are increasingly concerned about unemployment.