Eurozone at risk of losing 4.5 million jobs: Report
Wed Jul 11, 2012 5:6PM
It’s not only the eurozone that’s in trouble, the entire global economy is at risk of contagion.” A report by International Labor OrganizationA new report by the International Labor Organization (ILO) says the eurozone is in danger of losing 4.5 million jobs over the next four years unless it changes its current economic policies. According to the report if the 17-nation bloc does not prevent the spike by shifting away from austerity, the number of its unemployed workers will reach to 22 million. “It’s not only the eurozone that’s in trouble, the entire global economy is at risk of contagion,” the report said. It also added that young people are to be severely hit by the unwelcome consequences of a longer period of austerity.
This is while Director-General of ILO, Juan Somavia also warned at the launch of a report on the eurozone crisis on Wednesday that the eurozone has faced “its worst crisis since the creation of the single currency.”The official stated that if members of the eurozone fail to take a growth strategy to create new jobs, even the wealthiest countries of the area will be hit. “Unless policies change, all -- and I underline all countries in the eurozone -- will be hit, both those under stress and their wealthier counterparts,” Somavia noted. According to data released by the European Union the unemployment rate in the eurozone hit a record high of 11.1 percent in May 2012. Job losses keep climbing as the eurozone’s worsening debt crisis pushes businesses to cut staff to contain their financial problems. Various EU member states have been struggling with deep economic stagnancy since the bloc’s financial crisis began roughly five years ago. As a result, the member-states started implementing tough austerity measure in a bid to prevent facing double-dip recessions. The austerity measures have only resulted in growing anger among the most affected people, sacked or low-income workers and students. MR/JR