Unemployment may rise to 208m by2015 – ILO

The International Labour Organisation,
in its report released, yesterday,
warned that the number of unemployed
persons could rise to 208 million by
2015.

According to the World of Work report
released in Geneva, Switzerland, the ILO
stated that global unemployment is
expected to reach 208 million in2015, up
from 200 million today”.
It noted that “long-standing labour
market imbalances, such as high levels
of labour market informality in
developing countries and long-term
unemployment in advanced economies, will
remain acute”.
In countries like Nigeria where
unemployment is on the rise, the ILO
suggested that to check the trend,
countries could benefit from well-
designed social protection and a boost
of labour income.
The report titled, “repairing the
economic and social fabric”, recommended
“ Investment in key infrastructure
projects, along with measures to
facilitate the transition to formal
employment and to expand well-crafted
social protection and minimum wages
would help to further that objective”.
It suggested added, “. Such policies
would not only boost growth now, but
would also consolidate the emergence of
a large and growing middle-income group
–which is essential for ensuring
genuinely autonomous economic growth”.
Relating minimum wage to unemployment,
the ILO report stated, “ About half of
the 151 countries for which data are
available do not have a comprehensive
system of minimum wages. And, in those
countries where minimum wage
legislation does exist, stronger action
is often needed to improve
compliance.”.
It noted “ Well-designed systems of
minimum wages can provide an effective
income floor for both formal and
informal workers. They can also provide
an incentive to unlock lowproductivity
traps and, combined with social
protection floors, can contribute to
enhancing the capabilities of low-income
women and men”.
The ILO report however noted that “ Too
low a level reduces the relevance of
minimum wages; too high a level runs the
risk of firms refusing to comply.
Importantly, the report highlights the
point that regular updates and the
engagement of workers’ and employers’
organizations in minimum wage setting
are crucial to leveraging the benefits
of minimum wages and ensuring that they
pave the way for decent work
opportunities”.
In Nigeria, organised labour and many
employers especially state governments
are still at logger heads over the
payment of the national minimum wage.