UN Warning: 11 Million Increase in Unemployed Individuals in the Next Five Years

The United Nations has warned that due to slowing growth and economic fluctuations, unemployment will increase by 11 million in the next five years. According to a report on January 19 by Agence France-Presse, the International Labour Organization (ILO) of the United Nations stated that by 2019, over 212 million people will be unemployed. This figure currently stands at 201 million globally. "Guy Ryder," the head of the ILO in Geneva, said: "The slowdown in global economic growth continues, and this will have clear consequences." He pointed to the level of layoffs and reduced job opportunities since the onset of the economic crisis in 2008, stating: "Due to the economic crisis, unemployment and the lack of job opportunities have reached about 61 million." The ILO report on social and employment trends and prospects for 2015 indicated that to fill the employment gap caused by the economic crisis by 2019, 280 million job opportunities must be created. Guy Ryder noted: "These statistics mean that the unemployment crisis is still unresolved, and there is no room for optimism." According to the report, the unemployment crisis has decreased in the U.S., Japan, and the UK; however, the situation in some developed European countries is concerning. The head of the ILO stated: "Austerity measures, especially in Europe, have significantly contributed to the rise in unemployment." The ILO report mentioned that in 2017, in Germany, the engine of the Eurozone economy, the unemployment rate will rise from 4.7% to 5%, while in France, the second-largest economy in the Eurozone, it will drop below 10%. The age group of 15 to 24 years is the most vulnerable demographic globally. In 2014, the youth unemployment rate was reported at 13%, nearly three times the adult unemployment rate. The report states that the sharp decline in oil and gas prices in producer countries in Latin America, Africa, and the Arab world will severely impact the labor market. There are also positive news in the report, including that in developed countries, the middle class constitutes 34% of the workforce, compared to 20% in the 1990s. According to the report, 10% of workers earning less than $1.5 a day globally suffer from severe poverty. The deepening gap between the "haves" and "have-nots" and the atmosphere of distrust towards investment have made it difficult for many countries to emerge from the crisis. The report further states that wage reductions have been a key element in the rescue plans for crisis-hit countries in the Eurozone. Meanwhile, the continued decline in low prices in 18 Eurozone countries has raised concerns about slowing economic growth and declining public welfare levels in these societies. Guy Ryder added: "If low wages drive people towards lower consumption and the investment rate remains cautious, it will undoubtedly have a negative impact on economic growth. Wage inequality in some advanced countries has approached levels seen in developing countries." The ILO's new report states that only 10% of the global population owns 30 to 40% of the world's income and wealth, which ultimately leads to an increase in the existing wage gap. Social unrest, which had been decreasing in the 1990s and 2000s alongside falling unemployment rates, has increased again in recent years following the global economic crisis and is now 10% higher. Guy Ryder added: "The root of the waste of human resources and today's suffering and misery is the increase in unemployment." He urged governments worldwide to take action to address this issue.