‘No magic bullet’ to solve global jobs crisis, warns The World Bank
A worldwide jobs crisis could impact the chances of spurring global economic growth. The World Bank has warned.
In their latest study, the Bank said that an extra 600 million jobs needed to be created in the next 15 years to cope with the rapidly rising population.
At the report’s release at a G20 Labour and Employment Ministerial Meeting in Australia, the World Bank's senior director for jobs, Nigel Twose reiterated the severity of the problem.
"As this report makes clear, there is a shortage of jobs -- and quality jobs,” said Twose.
"And equally disturbingly, we're also seeing wage and income inequality widening within many G20 countries, although progress has been made in a few emerging economies, like Brazil and South Africa. There is no magic bullet to solve this jobs crisis, in emerging markets or advanced economies."
Compiled in conjunction with the OECD and the International Labour Organisation, the research found that more than 100 million people were unemployed in G20 economies.
Furthermore 447 million were reportedly considered "working poor", living on less than €1.55 ($2) daily.
Despite positive signs of recovery in the last twelve months, the Bank foresee that global growth will remain slow and below trend – which will negatively impact employment prospects.
The report calls on G20 group member countries to come up with a strategic plan to combat the employment issue.
"Coordinated policies in these areas are seen as the foundation for sustainable, job-creating economic growth," the report said.