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ILO: More than 200 Million People are Unemployed

2017-10-12

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  • The International Labor Organization (ILO) is urging private businesses to invest more in workers and support efforts to reduce unemployment around the world.
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  • The ILO released a report on Monday. It is called World Employment and Social Outlook 2017:
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  • Sustainable Enterprises and Jobs.
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  • The report states that more than 201 million people worldwide are jobless.
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  • It said that number represents an increase of 3.4 million people compared to 2016.
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  • The ILO says private companies, especially small- and medium-sized ones, can help to create good jobs around the world.
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  • The ILO study found that such companies employ almost 3 billion workers, or 87 percent of total employment worldwide.
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  • And it says a strong public sector can serve as the base for economic growth, job creation and poverty reduction.
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  • Deborah Greenfield is the ILO’s deputy director-general for policy.
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  • She says investing in workers is important for continued growth.
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  • Greenfield notes that providing training for permanent workers results in higher wages, higher productivity and lower unit labor costs.
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  • But she said many part-time and temporary workers are losing out.
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  • “But intensified use of temporary employment is associated with lower wages and lower productivity without achieving any gains in unit labor costs.
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  • The report also finds that on-the-job training is an important driver of innovation.
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  • Since temporary workers are rarely offered training, this might also affect innovation in firms in a negative way.”
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  • The ILO report said in some cases, innovative thinking has led to the addition of more temporary workers, most of them women.
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  • That might be helpful in the short-term, the report said.
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  • But it keeps wages low and reduces productivity because of the unpredictability of temporary work and the lack of retirement and other benefits.
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  • The ILO said innovation increases competitiveness and job creation for private businesses.
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  • It added that innovative companies are usually more productive, employ more educated workers, offer more training and add more women to the workforce.
  • [03:22.15]
  • I’m John Russell.
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