Financial crisis slashes 20 million jobs by end 2009

The financial crisis could lead to a 20 million increase in the number of unemployed world-wide by the end of 2009, International Labour Organisation (ILO) chief Juan Somavia warned Monday.

• “Estimates from the ILO indicate that the ‘number of unemployed could rise from 190 million in 2007 to 210 million in late 2009,’ Somavia told reporters.
• He added that the figure could grow further if the crisis grows and has a stronger impact on the real economy.
• Earlier this month, ILO’s chief called for a series of urgent and coordinated financial, social, regulatory and development measures to avert a slide into recession and address the “grave” consequences of the global financial crisis.
• A recent study published by the organisation said global employment rose by 30 per cent between the early 1990s and 2007.
• Income inequality dramatically growing in most regions of the world is expected to increase due to the current global financial crisis, according to the same study.