Nigeria: Global Unemployment to Rise By 3.4 Million in 2017 - ILO

The International Labour Organization (ILO) has said the global unemployment rate is expected to rise modestly from 5.7 to 5.8 percent in 2017 representing an increase of 3.4 million in the number of jobless people. According to the ILO's World Employment and Social Outlook - Trend 2017 (WESO) the number of unemployed persons globally in 2017 is forecast to stand at just over 201 million - with an additional rise of 2.7 million expected in 2018 - as the pace of labor force growth outstrips job creation. "We are facing the twin challenge of repairing the damage caused by the global economic and social crisis and creating quality jobs for the tens of millions of new labor market entrants every year," said ILO Director-General, Guy Ryder.

Economic growth continues to disappoint and underperform - both in terms of levels and the degree of inclusion. This paints a worrisome picture for the global economy and its ability to generate enough jobs. Let alone quality jobs. Persistent high levels of vulnerable forms of employment combined with a clear lack of progress in job quality - even in countries where aggregate figures are improving - are alarming. We need to ensure that the gains of growth are shared in an inclusive manner," he added.

The report shows that vulnerable forms of employment - i.e. contributing family workers and own-account workers - are expected to stay above 42 percent of total employment, accounting for 1.4 billion people worldwide in 2017.

"In fact, almost one in two workers in emerging countries are in vulnerable forms of employment, rising to more than four in five workers in developing countries," said Steven Tobin, ILO Senior Economist and lead author of the report. As a result, the number of workers in vulnerable employment is projected to grow by 11 million per year, with Southern Asia and sub-Saharan Africa being the most affected.

The authors also warn that unemployment challenges are particularly acute in Latin America and the Caribbean where the scars of the recent recession will have an important carry-over effect in 2017, as well as in Sub-Saharan Africa which is also in the midst of its lowest level of growth in over two decades. Both regions are confronted with strong growth in the numbers of individuals entering working age.

By contrast, unemployment should fall in 2017 among developed countries bringing their rate down to 6.2 percent (from 6.3 per cent). But the pace of improvement is slowing and there are signs of structural unemployment. In both Europe and North America, long-term unemployment remains stubbornly high compared to pre-crisis levels, and in the case of Europe, it continues to climb despite the receding unemployment rates.