The International Labour Organisation has painted a grim picture of Europe’s employment future in its annual World of Work report.
It warned the advanced economies are going to suffer a lost decade of jobs growth and the potential for social unrest in European Union countries is higher than anywhere else – with Cyprus, the Czech Republic, Greece, Italy, Portugal, Slovenia and Spain most at risk.
However the risk of social unrest had declined in Belgium, Germany,
Finland, Slovakia and Sweden since 2010.
What happens depends on what governments do according to the report’s author Raymond Torres: “Oh course, if nothing is done, there is a risk of a prolonged labour market recession in Europe with a lot of people moving into long-term unemployment or even dropping out of the labour market, which means that they no longer participate.”
He added: “It is also important to adopt and to move to a growth strategy, especially in the eurozone,” and he said the ILO favours better investment policies: “Without new credit to small enterprises (businesses) it is unthinkable to imagine a job recovery in Europe.”
The United Nations agency believes the real employment rate is unlikely to recover until 2018 in the EU and other developed countries – taking into account the growth in the working-age population.
In the report it puts the spotlight on increasing wage inequalities and partly blames larger companies for not using their rising profits productive investment in the real economy.