Global unemployment set to rise

The International Labor Organization has warned that the protracted financial crisis in many parts of the world continues to decimate the labor market. It has called on policy makers to reverse this development. The ongoing global financial crisis remained devastating in its effect on the worldwide jobs market, the International Labor Organization (ILO) reported in a study on Tuesday. It said some 28 million people had lost their jobs since the outbreak of the crisis five years ago, with about 39 million people giving up their search for employment because of dim prospects. The Geneva-based UN body spoke of a "long and deep crisis on the labor market," and warned that global unemployment would rise further over the next five years. It said that due to insufficient growth rates in most economies more than 210 million people would be out of work worldwide by 2018. More investments needed ILO Secretary-General Guy Ryder said his organization was particularly concerned about joblessness among people between 15 and 24 years of age, stating that almost 75 million young people were currently not able to earn a living. Ryder called on governments to do more to breathe new life into the labor market by increasing public spending on employment initiatives at a time when the private sector was reluctant to react to the challenges ILO officials also urged a quicker implementation of reforms in the banking sector, saying lenders had to focus more on their core business of providing loans particularly for small and medium-sized enterprises.