World of Work Report 2012

A comprehensive report analyzing the effect of the global economic crisis on the current state of labor markets. Predicts that current economic growth is too slow to improve employment and close the jobs deficit. The unemployment rate has increased since 2010 in two-thirds of European countries, and it has stalled in economically advanced countries like Japan and the United States. Job growth has remained a major issue in less advanced regions like the Middle East and Africa. Even in light of an economic recovery, certain groups like the long-term unemployed, women and youth are at risk of exclusion from the job market. In addition to the job deficit, the investment deficit has exacerbated the economic crisis. Small businesses are unable to access the same amount of funds that large firms can. Social unrest has increased globally as well in 57 of 106 countries analyzed through the Social Unrest Index. Since 2010, the global policy strategy has shifted from job creation to cutting deficits through austerity measures, which have not been conducive to economic growth or private investment in many countries, particularly in Southern Europe. Deregulation policies have also failed to boost economic and job growth. Current labor market reforms have largely failed to increase employment levels. An alternative three-faceted approach: labor market institutions must be bolstered for wages to increase with productivity, credit conditions and favorable business environments must be restored for small businesses, and public investment and social protection must be improved to reduce income inequality and poverty levels, thereby stimulating demand and ensuring marginalized groups are employed. In order to provide stable demand in the global economy, greater coordination between economic policies is needed, unregulated cross-border financial flows must be curbed, and macro-economic policies in case of another global crisis must be developed. Includes four articles: Employment, job quality and social implications of the global crisis; Employment protection and industrial relations: Recent trends and labor market impact; Fiscal consolidation and employment growth; and Investing in a sustainable recovery.