ILO: World economy on verge of new jobs recession

The global economy is on the verge of a new and deeper jobs recession that may ignite social unrest, the International Labour Organization (ILO) has warned. It will take at least five years for employment in advanced economies to return to pre-crisis levels, it said. The ILO also noted that in 45 of the 118 countries it examined, the risk of social unrest was rising. Separately, the OECD research body said G20 leaders meeting in Cannes this week need to take "bold decisions". The Organisation for Economic Co-operation and Development said the rescue plan announced by EU leaders on 26 October had been an important first step, but the measures must be implemented "promptly and forcefully". 'Moment of truth' In its World of Work Report 2011, the ILO said a stalled global economic recovery had begun to "dramatically affect" labour markets. It said approximately 80 million net new jobs would be needed over the next two years to get back to pre-crisis employment levels. But it said the recent slowdown in growth suggested that only half the jobs needed would be created. "We have reached the moment of truth. We have a brief window of opportunity to avoid a major double-dip in employment," said Raymond Torres from the ILO.