The global labour market needs time to recover

Global labour markets in the New Normal will display increasing complexity. On the one hand, many workers dislocated by the Great Recession will face long-term unemployment or underemployment.

Individuals possessing weak job skills may face permanent/semi-permanent unemployment, underscoring the urgency of investments in retraining programmes to align worker skills with the demands of the 21st century global economy.

On the other hand, individuals possessing specialised skills in strong demand by employers in high-growth, high-technology industries will again become objects of the “global war for talent” that dominated discussions of human resource management during the years preceding the Great Recession.

The global labor market still needs time to recover and there could be a lag of 18 months behind the economy’s rebound, Director-General of the World Trade Organization (WTO) Pascal Lamy said Monday.

“It is possible that there will be a stage between the recovery and the improvement of the labor market. It needs some time to pass,” he told Canal+ television.

The WTO chief said the pace of the recovery in Asia, the United States and Europe would differ a lot, with Asia recovering faster than the U.S. while Europe as a whole following behind.

The Organization for Economic Cooperation and Development (OECD) predicted in a report last week that economic growth would slow down in Europe, the U.S. and Japan in the first half of this year after an active up-trend in the last quarter of 2009.

The Group of Seven industrialized countries would see a year-on-year growth of 1.9 percent in the first quarter of this year, with the U.S.growing 2.4 percent, outpacing Japan and the three largest euro zero countries — Germany, France and Italy.

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3 thoughts on “The global labour market needs time to recover

  1. Improving of labour market requires a lot of time. It`s true. General economic situation begins to seem better, but the changes occur too slowly. Labour market may suffer the most in this case, because the crisis affected too many industries that could not be quickly rebuilt. Initiated a domino effect is difficult to stop. People are losing their jobs and spending less money, and therefore other workers may lose their jobs. And so it goes. The main thing is to give impulse to make rapidly some changes in this process.

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  2. It is interesting that the Asian labour market recover faster than the US and European markets. I think it´s based on two facts. The first is that the Asian market specially the Chinese and Indian ones are highly increasing within the last decade. The second aspect is that their governments and especially the Chinese one treasured up large dollar reserves which they used to boost their market during the crisis.

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  3. Labour market was hit by the financial crisis very hard. Many people lost their jobs and in the worst cases even their houses.
    As cludwiszewski wrote about the destruction power of domino effect that affected labour market, the same effect but reversed will help labour market to recover from the crisis. Government ‘stimulation injections’ do not seem to be working, so it will take longer than was planned.

    Reply

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