Global job losses could rise by 50 million in 2009

The global economic crisis could claim up to 50 million jobs worldwide by the end of this year, according to a report presented by the UN's International Labour Organisation (ILO) on Wednesday (28 January).

"Based on new developments in the labour market and depending on the timeliness and effectiveness of recovery efforts …global unemployment in 2009 could increase over 2007 by a range of 18 million to 30 million workers, and more than 50 million if the situation continues to deteriorate," says the document.

In terms of percentages, that would mean the world's unemployment rate would reach 7.1 percent by the end of the year, compared with 6 percent in 2008 and 5.7 percent in 2007.

"The ILO message is realistic, not alarmist. We are now facing a global jobs crisis. Many governments are aware and acting, but more decisive and coordinated international action is needed to avert a global social recession," ILO Director-General, Juan Somavia said in a statement.

"Progress in poverty reduction is unravelling and middle classes worldwide are weakening. The political and security implications are daunting," he added.

According to the ILO report, the EU and developed nations saw "the largest increase in a regional unemployment rate" in 2008, with the number of jobless people there increasing by 3.5 million and reaching 32.3 million.

By contrast, South Asia, Southeast and East Asia created the most jobs, and East Asia recorded the lowest unemployment rate of 3.8 percent.

But even those who have kept their jobs will be affected, the ILO warns.

"We can expect that for many of those who manage to keep a job, earnings and other conditions of employment will deteriorate," said Mr Somavia.

In order to counter the tendency, the organisation recommends more support for small and medium enterprises, and more public investment in infrastructure and housing, community infrastructure, as well as so-called green jobs.

It also says a wider "re-skilling" of redundant workers and protecting pensions from "devastating declines in financial markets" are needed, while "social dialogue" should be boosted on all levels.