The United States job market has been slowly picking up and the unemployment rate has slowly but steadily risen in the past couple of months. However, the global markets have not been faring as well.
In its annual report released on Monday of this week, the International Labor Organization stated there is cause for concern in relation to the global job market. As a result, they called for “more coordination of fiscal policies, repair and regulation of the financial sector and support for the real economy.” According to their report, there are currently 200 million unemployed people in the world and in order to mend the situation there needs to be 40 million jobs created each year for a decade. That is quite a big number, but bear in mind that this is the number of jobs that needs to be created across continents and not just in the United States.
“What has changed with respect to last year is that our forecast has become much more pessimistic,” said Ekkehard Ernst, one of the report’s authors. This seems to contradict the feelings that were recently swirling around the U.S., but in locations such as the United Kingdom the unemployment rate continues to rise and the hopes of workers are rapidly plummeting. “We had expected a gradual stagnation or coming down of unemployment numbers. That’s not something we foresee this year any more. Even in our baseline the unemployment numbers are increasing. With a possibility of a serious deterioration of global growth these numbers actually increase very much.” This, overall, is not the best of news for any country, developed or not.
The ILO suggests that every country rise to the occasion and take actions that would improve not just their markets, but the global job market in general. “Hence, to generate sustainable growth while maintaining social cohesion, the world must rise to the urgent challenge of creating 600 million productive jobs over the next decade,” quotes the report. If focusing on our own job market wasn’t motivation enough, the potential drop of the global job market should be. Now, not only does the increase of jobs help us, but it in turn helps the global market overall. This kind of news does a great job of lowering peoples optimism, but in order to push through and mend the job market, optimism and hope needs to be a main goal of the people- both employed and unemployed. Even though the ILO predicts that the unemployment rate will remain at around 6 percent until 2016, every person and every country needs to do whatever they can to uplift the markets in order to pull ourselves out of this mess.