Economic growth and labour market developments

In October 2007 experts forecast an global economic growth for 2008 at 4.8 percent, but concerning the economic crisis this number has to be corrected to only 3,8 percent. This mean that the global economic growth in 2008 was below of the numbers seen the years before and it also means that there was also a weakening in a number of labour markets and an increase in unemployment. The global unemployment rate increased from 5,7 percent in 2007 to 6,0 percent in 2008 in total the ranks of the unemployed increased by 10.7 million people between this two years. And this means that 2008 190 million people, of which 109 million are men and 81 million are woman, were without a job. Concerning to specialists it is harder to get back into work if somebody stays for a long period without work. The “employability” of this people is decreasing, because their miss the praxis, which is very important for employer, and they also miss the progress which took place in the field where they worked before or was trained in.

This affects especially hard the young workers who may get trapped into a lifetime of weak attachment to the labour market and change only between low paid insecure work and unemployment. In 2008 the global number of unemployed youth increased to 76 million.

The crisis made the situation in many developing countries even worse in which over half workforce is employed in conditions that fall short of decent work. By the end of 2008 in these countries the unemployment and also vulnerable employment increase rapidly. Concerning to the World Bank poverty estimation which was published in 2008 the new threshold for extreme poverty is now set at US$1.25 a day and 1.4 billion people in developing countries are living in extreme poverty. 2.6 billion people consumes less than US$ 2 a day. But the new estimates do not yet reflect the increase in food price since 2005.


One thought on “Economic growth and labour market developments

  1. So let’s consider this: 2.6 billion people consume less than $2,-.
    the world population as calculated from may 2009 is estimated to be 6,782,536,522 so let’s say 6.7 billion people,. so that’s 40% of the population! THAT’S disturbing, and the idea of the crisis worsening these number as we speak seems almost unreal.


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