Global Employment Trends 2013

The Global Employment Trends 2013 report, published by the International Labour Organization (ILO), examined the global labour market in the aftermath of the global financial crisis of 2008–2009. The report, subtitled “Recovering from a Second Jobs Dip,” highlighted the slow and uneven nature of global employment recovery and warned of a worsening global jobs crisis, especially among youth and in developing economies.
The ILO’s findings reflected deep concerns about persistent unemployment, underemployment, and deteriorating job quality, showing that economic growth in many regions was not translating into sufficient job creation.

Overview

By 2013, the global economy had entered a phase of slow recovery, but the ILO noted that employment growth remained fragile. The effects of the financial crisis continued to suppress job opportunities and wage growth. The report observed that millions of people had dropped out of the labour market altogether, becoming “discouraged workers.”
The report’s main message was that the world faced a “second jobs dip,” meaning that employment conditions had worsened again after a brief period of improvement following the 2008–09 crisis.

Key Findings

1. Global Unemployment Level:
   • The total number of unemployed people worldwide reached 197 million in 2012 — an increase of 4.2 million from the previous year.
   • The global unemployment rate stood at 5.9%.
   • The ILO predicted that unemployment would continue to rise, reaching 202 million by 2014 if economic conditions did not improve.
2. Youth Unemployment:
   • Youth unemployment remained one of the most severe global challenges.
   • About 73.8 million young people (aged 15–24) were unemployed in 2012.
   • The global youth unemployment rate was nearly 12.6%, roughly three times higher than the adult unemployment rate.
   • Many young people faced long-term joblessness or were forced into part-time or informal employment.
3. Discouraged Workers and Labour Market Withdrawal:
   • Millions of potential workers stopped looking for jobs due to prolonged joblessness, leading to a hidden unemployment problem.
   • The report estimated that if these discouraged workers were included, the real global unemployment figure would have been about 39 million higher.
4. Regional Disparities:
   • Developed economies (particularly in Europe) continued to experience high unemployment, especially among youth, due to fiscal austerity and slow economic growth.
   • Emerging and developing economies showed some resilience but faced challenges such as informal employment, low productivity, and limited access to decent work.
   • Sub-Saharan Africa and South Asia had high employment rates but with a predominance of vulnerable jobs lacking social protection and fair wages.
5. Quality of Employment:
   • The ILO emphasised that even when jobs were being created, many were low-paying, insecure, and informal.
   • The share of workers in vulnerable employment (self-employment or unpaid family work) remained at around 48% of total employment globally.
6. Gender Gap in Employment:
   • The female labour force participation rate was 26 percentage points lower than that of men.
   • Women were disproportionately represented in vulnerable and informal employment sectors.

Causes of Weak Employment Recovery

The ILO identified several structural and policy factors responsible for the weak employment trends:

• Slow Economic Growth: The global economy grew at a modest pace of around 3% in 2012, insufficient to generate adequate job opportunities.
• Austerity Measures: Fiscal tightening in advanced economies, especially in Europe, led to reduced public spending and job losses in public sectors.
• Private Investment Decline: Uncertainty and low confidence among investors slowed capital formation, reducing job creation.
• Labour Market Mismatch: Skills gaps between available jobs and the workforce hindered hiring, especially for young workers.
• Informality in Developing Countries: Lack of industrial diversification and weak institutional frameworks perpetuated low-quality jobs.

Recommendations and Policy Measures

The ILO Global Employment Trends 2013 report proposed a series of policy interventions aimed at stimulating job creation and ensuring decent work. These include:

1. Promoting Aggregate Demand: Governments were encouraged to prioritise job-friendly fiscal and monetary policies rather than strict austerity measures.
2. Public Investment in Infrastructure: Increased public spending on infrastructure, renewable energy, and education could generate employment and stimulate growth.
3. Supporting Small and Medium Enterprises (SMEs): SMEs are key drivers of job creation and innovation; improving access to finance and reducing regulatory burdens were recommended.
4. Enhancing Labour Market Policies:
   • Improving training and re-skilling programmes to address skill mismatches.
   • Expanding social protection systems to include informal and vulnerable workers.
5. Addressing Youth Unemployment:
   • Introducing youth-targeted employment schemes.
   • Strengthening vocational training and apprenticeships.
   • Encouraging entrepreneurship among young people.
6. Gender Equality Measures:
   • Promoting equal pay and working conditions.
   • Expanding childcare facilities and flexible work arrangements to improve female labour participation.

Regional Highlights

1. Europe and Developed Economies:
   • Suffered the most from the employment downturn due to slow recovery and austerity policies.
   • Youth unemployment rates exceeded 25% in several countries, including Spain and Greece.
2. East Asia:
   • Showed relatively low unemployment rates but faced challenges related to rising automation and ageing populations.
3. South Asia:
   • Had high employment rates but mostly in low-productivity agricultural or informal sectors.
   • India and neighbouring countries needed structural reforms to generate decent non-farm jobs.
4. Sub-Saharan Africa:
   • Employment expanded but remained largely vulnerable and informal.
   • Poverty among the working population remained widespread.
5. Latin America:
   • Witnessed modest improvement due to stronger domestic demand and social protection measures.

Major Conclusions

• The global economy was failing to create enough decent jobs to absorb the growing labour force.
• The crisis was not just economic but social, with long-term risks of inequality, political instability, and social unrest.
• Without coordinated global policy efforts, the employment gap was likely to widen, threatening sustainable growth.

Significance of the Report

The Global Employment Trends 2013 report played a vital role in shaping discussions on global labour policy. It served as:

• A warning about the social consequences of prolonged unemployment.
• A call for inclusive growth that prioritises job creation.
• A policy guide for governments, urging them to balance fiscal discipline with social investment.