U.N. labor report: Global unemployment over 200 million

Oct. 10 (UPI) — Global unemployment has risen to more than 200 million people this year, the United Nations’ International Labor Organization said in a new report.

The increase of 3.4 million unemployed people worldwide underscores the role of the private sector, the “World Employment and Social Outlook 2017: Sustainable Enterprises and Jobs” report said.

The global study notes that private businesses account for 87 percent, or around three billion people, of total global employment. It added that smaller businesses have stagnated, and that the impact of their decline is greater in developing countries — where one in two workers are employed in a small or medium-sized company.

The data indicate that those companies grew faster prior to the 2008 global financial decline. Job creation in the small and medium sectors since then is “absent,’ the report said.

The report called on world governments to stem the rise of unemployment.

The ILO’s Deborah Greenfield said investment in workers is a necessity, and that hiring only temporary workers does not help the situation.

“Intensified use of temporary employment is associated with lower wages and lower productivity without achieving any gains in unit labor costs,” she said. “The report also finds that on-the-job training is an important driver of innovation. Since temporary workers are rarely offered training, this might also affect innovation in firms in a negative way.”

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