A new briefing from the Labour 20 (L20) representing workers and their unions said if current policies are continued by G20 Finance Ministers, the global jobs gap will rise and by 2019, more than 212 million people will be out of work, up from 201 million in 2014.
John Evans, General Secretary of the Trade Union Advisory Committee to the OECD, warned that the G20 Finance Ministers are off target in their commitment to raise G20 GDP by 2.1 % above the trajectory implied by current policies over the next five years.
“Global growth projections from main international institutions have yet again been revised downwards.
“Slowing growth in emerging economies and the appearance of deflation in the eurozone represent major risks to jobs and living standards.
“Growth in many economies has stalled due to fiscal austerity and falling or stagnant incomes of working families.
“The longer unemployment remains elevated at 200 million or continues to rise, the greater the risk that it becomes ‘structural’ due to scarring effects,” said John Evans.
The first meeting of G20 Finance Ministers since anti-austerity party Syriza swept to power in Greece takes place in Istanbul, under the Turkish presidency of the G20.
“Finance Ministers should be feeling the pressure.
“The limits to austerity are now demonstrated by the rejection of austerity policies at the polls by the Greek people.
“Austerity and structural reforms have not solved the problems facing Greece – they have only added new ones,” said Sharan Burrow, General Secretary of the International Trade Union Confederation.
“Raising wages of those on low and middle incomes together with expanded public investment is necessary to kick-start growth and to ensure that it is job-rich, inclusive and sustainable for sound long-term economic development,” said Ms Burrow.
The Brisbane Action Plan, agreed at the G20 Summit last November to increase global growth, contains nearly 1000 commitments.
Economic simulations conducted for the L20 show that a coordinated mix of wage and investment policies could create up to 5.84% more growth in G20 countries – compared to business as usual – and create up to 33 million jobs.
“By prioritising plans that deliver growth with employment plans, G20 Finance Ministers could make 2015 a turning point in tackling the global economic crisis,” said Mr Evans.
ENDS
Read the L20 Priority Recommendations to the G20 Finance Ministers
Share the L20 Jobs and Wages Infographic
