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Global Jobs gap Costs $1.2 trn in Lost Wages

Global Jobs gap Costs $1.2 trn in Lost Wages

Some 61 mn fewer people were employed in 2014 than there would have been had pre-crisis employment growth trends continued.

The global financial crisis of 2008-10 had a big impact on jobs. Employment growth has stalled at a rate of about 1.4 per cent per year since 2011. While this compares favourably with the crisis period when that rate averaged 0.9 per cent, it is below the 1.7 per cent annual rate between 2000 and 2007, according to the International Labour Organization. The slower employment growth since 2011 compared with before 2008 means there are 61 million fewer jobs in 2014 than there would have been had the pre-crisis growth trends been maintained, the ILO said.

In 2013, that jobs gap corresponded to an estimated $1.2 trillion in lost wages around the world, which is equivalent to about 1.2 per cent of total annual global output and roughly 2 per cent of total global consumption. Global labour productivity growth declined from an average annual rate of 1.5 per cent in the pre-crisis period to -1 per cent during the crisis years. It rebounded to 1.4 per cent between 2010 and 2014. Wage and salaried employment is growing, but still only accounts for half of global employment. Between 2015 and 2019, an estimated two-thirds of net new employment growth around the world will be wage and salaried employment.

Part-time employment is widespread, particularly among women, and is generally increasing. In the vast majority of countries with available information, the rise in the number of part-time jobs outpaced gains in full-time jobs between 2009 and 2013.