Increasing Unemployment Rate: What Does the Future Hold for the Nigerian Youth

Topics: Unemployment, Monetary policy, Keynesian economics Pages: 2 (514 words) Published: January 25, 2013
A record 202 million people could be unemployed across the world in 2013, the International Labour Organization (ILO) said on Tuesday. Five years on from the onset of the financial crisis, unemployment is on the rise again as economies around the world lose jobs and the fragile recovery is threatened by "incoherent monetary policy" in the US and Europe, said the ILO. According to United Nation's agency's latest report, Global EmploymentTrends 2013, 6% of the world's workforce were without a job in 2012. The number of jobless people around the world rose by 4m in 2012 to 197m. Young people were the worst affected: nearly 13% of those under 24 were unemployed. Some 35% of all young unemployed people have been out of work for six months or longer in advanced economies, up from 28.5% in 2007. "This is a massive waste of the lives of young people and their talents and extraordinarily damaging to the people themselves and their societies even if stability were not to be affected," said ILO chief Guy Ryder. The situation is being exacerbated by "incoherent monetary policy," in the world's largest economies (the G20), said the ILO. "In comparison with the crisis years of 2008 and 2009, the stance of monetary and fiscal policies in G20 countries has lost coherence, thereby increasing uncertainty and limiting policy effectiveness to support the recovery," said the report. The global economy is expected to show a modest gain in 2013, with output up 3.6% compared to 3.3% in 2012, according to the International Monetary Fund. But this fragile recovery is threatened by political uncertainty on both sides of the Atlantic that threatens recovery worldwide, said the ILO. In the US, the recovery is being challenged by negotiations over the debt ceiling, and spending cuts associated with the fiscal cliff. In Europe, a modest recovery is dependent on the ability of political leaders to "establish credible policies to promote fiscal integration of Euro-area economies". "Incoherence...
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