Some 4.5 million people in the eurozone could lose employment in the next four years unless the region starts focussing on creating jobs, the International Labour Organisation (ILO) said Wednesday in Geneva.
"Unless targeted measures are taken to increase real economy investments, the economic crisis will deepen and the employment recovery will never take off," said Juan Somavia, the director general of the UN organisation.
A long-lasting labour market recession would threaten the future of the eurozone, the ILO warned in a report.
There are currently 17.4 people without a job in the currency zone. More than 3 million are below the age of 25. The ILO recommended that governments follow the example of Nordic countries, which have special programmes for young people without training or jobs.
It also said rising productivity in the zone's stronger economies should be matched by wage rises, in order to boost consumer demand. Banks should be pressured to give more loans to small firms, and further austerity measures should be avoided by making shareholders rather than tax payers foot the bill for banking bailouts, the organisation added.
Comments
Comments are closed.