Global job troubles could last a while

Jon Bithrey Oct 1, 2010
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Global job troubles could last a while

Jon Bithrey Oct 1, 2010
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TEXT OF INTERVIEW

STEVE CHIOTAKIS: It could take even longer for global employment to return to a pre-financial crisis levels. The United Nations’ International Labor Organization — the ILO — says continued budget cuts in the developing world will hit jobs in a lot of places. The BBC’s Jon Bithrey is with us live from London this morning. Hi Jon.

JON BITHREY: Hi there Steve.

CHIOTAKIS: How extensive is this ILO report?

BITHREY: Well the ILO’s looked at the levels of employment
in 69 countries — both developed and developing. It says that there are 23 million more people out of work now than there were before the onset of the banking crisis and the global recession. About two-thirds of those job losses are in the U.S. and Europe. And from what the ILO is now saying, it’s going to take even longer than earlier estimates for the labor market to rebound. That’s because governments — particularly in Europe — are running scared over deficits and slashing public spending, so the ILO says employment won’t recover until 2015.

CHIOTAKIS: And what’s the ILO, John, saying about the effects of this long-term unemployment?

BITHREY: The longer people are out of work the harder it is to get back into work. The ILO says 40 percent of job seekers in developed countries have been out of work for more than a year — and that figure is worst among young people. The recommendation is that countries focus on training young people and reforming the financial system so savings are used more productively to create jobs.

CHIOTAKIS: All right. The BBC’s Jon Bithrey in London.
Jon, thanks.

BITHREY: Thank you Steve.

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