The growth of the global economy has slipped gradually but steadily to the weakest pace since the immediate aftermath of the financial crisis. With the latest downward revisions in growth prospects, the jobs gap of people not in work but would have had a job if pre-crisis growth had resumed could rise to over 80 million by 2020.
Weakening growth has slowed the transformation into better work opportunities of low productivity, poorly remunerated jobs. Reductions in the share of working poverty in total employment and the absolute numbers of people living and working in poverty have stalled.
Guy Ryder, ILO Director-General to the International Monetary and Financial Committee said this in a statement on Saturday, according to a message received here.
High and rising inequality impacts on potential growth by undermining consumer demand, reducing skills, capabilities, opportunities and mobility, as well as weakening social and political cohesion, he further said.
“Labour shares in national income are on a downward trend in most large economies in recent years. The declining labour income share in many countries at the same time limits household consumption and reduces overall aggregate demand, which is further weakened by low investment leading to low global economic growth,” he added.
“It is vital that current trends of rising inequality and slowing growth are quickly reversed by concerted action to reduce inequality, generate decent jobs and sustainable enterprises, and invest in the infrastructure for faster, greener and more inclusive growth in line with the Paris Agreement on climate change adopted in December 2015,” he also said.