Global Unions call for jobs stimulus as OECD assessment points to widening

Trade unions have called for a jobs stimulus by governments as the OECD publishes an Economic Assessment that shows a weakening global economy and spreading recession in Europe.

The OECD has revised downwards its growth forecasts from May and estimates that Italy, France and the U.K. are already in recession, whilst Germany is forecast to be in recession in the final two quarters of 2012. Against this background unemployment is expected to rise again “with adverse effects on income growth, confidence and activity”.

Commenting on the figures, Sharan Burrow, General Secretary of the International Trade Union Confederation, said: “The renewed downturn - particularly in Europe - demonstrates once and for all that the severe austerity policies supported by the IMF, the European Central Bank and the European Commission are doomed to failure.”

Commenting on the policy recommendations, John Evans, General Secretary of the Trade Union Advisory Committee to the OECD said “at the Los Cabos G20 Summit governments committed to support demand if the global economy weakens. The economy has weakened and they now need to honour their commitment and stimulate jobs and investment”.