[00:00.00]The International Labor Organization (ILO) is urging private businesses to invest more in workers and support efforts to reduce unemployment around the world.
[00:16.26]The ILO released a report on Monday. It is called World Employment and Social Outlook 2017:
[00:26.83]Sustainable Enterprises and Jobs.
[00:30.88]The report states that more than 201 million people worldwide are jobless.
[00:38.81]It said that number represents an increase of 3.4 million people compared to 2016.
[00:49.61]The ILO says private companies, especially small- and medium-sized ones, can help to create good jobs around the world.
[01:01.79]The ILO study found that such companies employ almost 3 billion workers, or 87 percent of total employment worldwide.
[01:14.40]And it says a strong public sector can serve as the base for economic growth, job creation and poverty reduction.
[01:26.37]Deborah Greenfield is the ILO’s deputy director-general for policy.
[01:32.75]She says investing in workers is important for continued growth.
[01:39.19]Greenfield notes that providing training for permanent workers results in higher wages, higher productivity and lower unit labor costs.
[01:53.48]But she said many part-time and temporary workers are losing out.
[02:00.14]“But intensified use of temporary employment is associated with lower wages and lower productivity without achieving any gains in unit labor costs.
[02:11.98]The report also finds that on-the-job training is an important driver of innovation.
[02:18.16]Since temporary workers are rarely offered training, this might also affect innovation in firms in a negative way.”
[02:27.77]The ILO report said in some cases, innovative thinking has led to the addition of more temporary workers, most of them women.
[02:39.03]That might be helpful in the short-term, the report said.
[02:44.26]But it keeps wages low and reduces productivity because of the unpredictability of temporary work and the lack of retirement and other benefits.
[02:57.87]The ILO said innovation increases competitiveness and job creation for private businesses.
[03:07.72]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.