The head of the International Labour Organisation decried Wednesday the human cost of the eurozone's austerity-focused attempts to resolve the debt crisis. Current measures have been unsuccessful in reducing public debt, yet are creating broad social problems, Somavia told the opening of the ILO's annual conference in Geneva.
"The austerity-only course to fiscal consolidation is leading to economic stagnation, job loss, reduced protection, and huge human costs," ILO Director General Juan Somavia said. The ILO draws up and monitors international labour standards and is comprised of governments, employers and workers.
Somavia, who steps down in September after 13 years, said "productive investments in sustainable enterprises" were needed to increase jobs, consumer demand and fiscal revenues. The ILO warned last week of the plight of the world's unemployed youths. Nearly 75 million people aged 15 to 24 will be out of work this year, the UN body said, as the youth joblessness rate creeps back up to the peak seen following the 2008 financial crisis. Youth employment will be a main theme at this year's conference, which runs to June 14, when Myanmar opposition leader Aung San Suu Kyi is scheduled to deliver an address during her first international trip in 24 years. The ILO on Monday elected Somavia's successor, British former trade union leader Guy Ryder.