DUSHANBE, January 22, 2015, Asia-plus – The International Labour Organization (ILO) report says sluggish jobs recovery and social instability are the result of greater inequality.

A new ILO report, World Employment and Social Outlook – Trends 2015  (WESO), warns that unemployment will continue to rise in the coming years, as the global economy has entered a new period combining slower growth, widening inequalities and turbulence.

By 2019, more than 212 million people will be out of work, up from the current 201 million, according to the report.

The employment situation has improved in the United States and Japan, but remains difficult in a number of advanced economies, particularly in Europe.

Two regions, South Asia and Sub-Saharan Africa, accounted for three quarters of the world’s vulnerable employment.  East Asia is among the regions that are likely to make the biggest dent in vulnerable employment, which is expected to be reduced in the region from 50.2 per cent in 2007 to 38.9 per cent in 2019.

The steep decline in oil and gas prices, if sustained, may improve the employment outlook somewhat in many advanced economies and several Asian countries according to some forecasts.  By contrast, it will hit labor markets hard in major oil and gas producing countries, notably in Latin America, Africa and the Arab region.

Young workers aged 15-24 are particularly hit by the crisis, with a global youth unemployment rate of almost 13 per cent in 2014 and a further increase expected in coming years. By contrast, older workers have fared relatively well since the start of the global financial crisis in 2008.

In developing countries, the middle class now makes up more than 34 per cent of total employment.  The biggest progress has been in emerging and low-income countries.

Growing and persistent inequality and uncertain prospects for enterprise investment, the report explains, has made it difficult for countries to rebound from the crisis.

The report says income inequality will continue to widen, with the richest 10 per cent earning 30 to 40 per cent of total income while the poorest 10 per cent will earn between 2 and 7 per cent of total income.

These trends have undermined trust in governments and kept the risk of social unrest high, the report warns. Social unrest is particularly acute in countries and regions where youth unemployment is high or rising rapidly.

In line with the global unemployment rate, social unrest shot up since the beginning of the crisis in 2008, and has now reached levels almost 10 per cent higher than before the crisis.

Only developed economies and countries in South-East Asia and the Pacific region have seen a reduction in social unrest – after peaks before or around the global crisis.  But even there, levels of social unrest are significantly above historical averages.

Structural factors shaping the world of work, such as a declining labor supply – due in part to an aging population in many parts of the world – have subdued global economic growth, according to the report.

Other factors include major shifts in demand for skills.  At the global level, the share of both low-skilled, non-routine jobs, such as security personnel and some personal care workers, and high-skilled non-routine cognitive jobs, such as lawyers and software engineers, has increased.  By contrast, routine middle-skilled jobs – like book-keepers and clerical workers – are declining.