The worldwide job situation is bad and doesn’t show any sign of recovery at short notice.
According to the International Labour Organisation (ILO) the European Union should intervene coordinated to get the European labour market to improve again. This could be done by providing structural trusts.
According to the ILO the worldwide job crisis has gone into a new, more problematic face. Last year an estimated 196 million people worldwide were unemployed. This year that number will rise to 202 million people, about 6% increase.
The unemployment rate in Europe has increased in nearly two-thirds of European countries since 2010. The recovery of the labour market in Europe isn’t expected until the end of 2016.
Raymond Torres, the principle of the ILO, says that the limited focus on government cuts with a lot of countries in the European union enhances the job crisis and can even cause a new recession in Europe. Therefore the alter of the labour market would work in a lot of cases all wrong, especially in the short term.
Another problem that sticks out in the World of Work rapport of the ILO is that more job seekers get demoralised and find themselves into a negative spiral.
In Europe an average 40% of job seekers between 25 and 49 years old are unemployed for more than a year.
Besides that, the high unemployment under youth increases the risk of social unrest. In 57 out of 106 countries the social unrest has increased in 2011 compared to 2010. Europe, the Middle East, North Africa and sub-Saharan Africa show the most heightened risk of social unrest. Latin America shows a decrease in the risk of social unrest. This is thanks to a degree of employment recovery.
The ILO names a couple of solutions to challenge the job crisis, like starting structural European trusts, strengthen the regulation of the labour market in the European Union and strengthen the labour market institutions.