Unemployment in developed nations puts global economy in standby

In the US,employment growth slowed sharply in May with only 54,000 jobs being added.

Even as developed economies are beginning to recover from the impact of the financial turmoil of 2008 and the recent Eurozone crisis,employment forecasts continue to be pessimistic. Concerned by this phenomenon of jobless recovery in many parts of the world,labour and employment ministers of G-20 countries are set to meet later this year.

Though employment in emerging economies has largely recovered,the depressed labour market is a major concern for developed countries. Employment is a key macro economic indicator. Until it goes back to pre-crisis levels,the global economy will not be considered to have fully recovered. More problematic is that it also puts stress on their precarious financial system as most of these countries dole out unemployment benefits to people out of jobs, an official said.

The meeting to be held in Paris between September 25 and 27,is expected to focus on policies taken by member countries to boost employment and the way forward.

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Individual countries will share their experiences and the meeting will also focus on working out a global coordinated policy that can be taken up for recovery in labour markets, the official said,adding that challenges like the continuing crisis in the Eurozone,soaring fuel prices and high inflation as well as the natural disasters in Japan have put further pressure on the global labour market.

The decisions are also expected to be included in the final G-20 communique that is prepared for the heads of states at Cannes in November.

Employment data pouring in till now has not been very positive. In the US,employment growth slowed sharply in May with only 54,000 jobs being added,instead of the expected 1,50,000.

US President Barrack Obama has also acknowledged that unemployment continues to be a big challenge although the economy is growing.

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Similarly,latest data released by Eurostat,the European Unions official statistics agency,revealed that overall employment rates in the economic bloc had only marginally increased by 0.3 per cent quarter on quarter.

The International Labour Office (ILO) in its annual employment trends survey earlier this year had also cautioned weak recovery in jobs is likely to continue in 2011,especially in developed economies.