Connect with us

Reports

A human-centred agenda needed for a decent future of work

Published

on

The ILO Global Commission on the Future of Work  has called on governments to commit to a set of measures in order to address the challenges caused by unprecedented transformational change in the world of work.

Co-chaired by South African President Cyril Ramaphosa and Swedish Prime Minister, Stefan Löfven, the commission outlines a vision for a human-centred agenda that is based on investing in people’s capabilities, institutions of work and in decent and sustainable work.

Among the ten recommendations are:

  • A universal labour guarantee that protects fundamental workers’ rights, an adequate living wage, limits on hours of work and safe and healthy workplaces.
  • Guaranteed social protection from birth to old age that supports people’s needs over the life cycle.
  • A universal entitlement to lifelong learning that enables people to skill, reskill and upskill.
  • Managing technological change to boost decent work, including an international governance system for digital labour platforms.
  • Greater investments in the care, green and rural economies.
  • A transformative and measurable agenda for gender equality.
  • Reshaping business incentives to encourage long-term investments.

“Countless opportunities lie ahead to improve the quality of working lives, expand choice, close the gender gap, reverse the damages wreaked by global inequality. Yet none of this will happen by itself. Without decisive action we will be sleepwalking into a world that widens existing inequalities and uncertainties,” the report stresses.

It outlines the challenges caused by new technology, climate change and demography and calls for a collective global response to the disruptions they are causing in the world of work.

Artificial intelligence, automation and robotics will lead to job losses, as skills become obsolete. However, these same technological advances, along with the greening of economies will also create millions of jobs – if new opportunities are seized.

The report is the culmination of a 15-month examination by the 27-member commission, which is made up of leading figures from business and labour, think tanks, academia, government and non-governmental organizations.

“The ILO Global Commission Report on the Future of Work  is a vital contribution to global understanding of the changes occurring – and that will continue to unfold – in the world of work,” said Ramaphosa. “The report should stimulate engagement and partnerships within and between national and regional jurisdictions to ensure that the global economy and global society becomes more equitable, just and inclusive. At the same it should inspire global action to contain or eliminate challenges that humanity has inflicted on itself in the course of history.”

Löfven, for his part said: “The world of work is undergoing great changes. They create many opportunities for more and better jobs. But governments, trade unions and employers need to work together, to make economies and labour markets more inclusive. Such a social dialogue can help make globalization work for everyone.”

The report also highlights the ‘unique role’ the ILO should play in the development and delivery of the ‘human-centred economic agenda’ in the international system and calls on the organization to give urgent attention to the implementation of the report’s recommendations.

‘The issues highlighted in this report matter to people everywhere and to the planet,’ commented ILO Director-General Guy Ryder. ‘They may be challenging but we ignore them at our peril. The ILO’s mandate, bringing together governments, employers and workers from all parts of the world, means the organization is well suited to act as a compass and a guide in order to help open up new vistas for coming generations at work.’

Continue Reading
Comments

Reports

The Path to Better Jobs in a Post Covid-19 Latin America

Published

on

Economic crises like the one that Latin America and the Caribbean is suffering now, have long-lasting effects on the structure of employment and may permanently drive many from the formal economy, according to a new World Bank report.

The Covid-19 pandemic is having the biggest impact on low-skilled workers and exacerbating the region’s already high inequality, according to EMPLOYMENT IN CRISIS: The Path to Better Jobs in a Post Covid-19 Latin America. Low-skilled workers often suffer from lower earnings for a decade following a crisis, while high-skilled workers see a quick rebound. As a result, government labor policies should focus on providing social safety nets and retraining, as well as improving the macroeconomic and business environment to ensure long-term and inclusive economic growth.

Economic recovery has often been a myth when it comes to jobs, but it doesn’t have to be that way,” said World Bank Vice President for Latin America and the Caribbean Carlos Felipe Jaramillo. “The right policies can help limit the impact crises have on employment and foster the creation of more jobs in recoveries.

As some of the largest shocks that have shaken the region in recent decades show, the consequences of crisis in Latin America and the Caribbean are long-term and leave deep scars on employment. For example, employment data from before and after the Brazilian debt crisis, the effects of the Asian financial crisis in Chile, and the impact of the 2008-2009 global crisis in Mexico show that rapid recoveries did not materialize. In all three cases, the employment curve suffered a strongly negative deviation because of these crisis, which, far from reversing became more pronounced over time.

On average, after three years, major crisis cause a net loss of 1.5 million jobs, with a 3% contraction of formal work and an expansion of the informal. The current crisis could be even worse and cause a contraction in formal employment of up to 4%.

Low skilled workers tend to suffer the most, exacerbating persistent inequities in the region. For them, the scars of the crises can remain for up to a decade, with loss of income and greater vulnerability. In addition, two thirds of the countries in the region do not have national assistance or unemployment insurance programs. To minimize this long-term scarring, governments should adopt policies to support a sustainable recovery of economies and facilitate the recovery of employment.

We need to seize the opportunity to build back better,” said Joana Silva, World Bank Senior Economist and the lead author of the report. “We should strengthen our labor markets so they are able to cope with and quickly reverse the impacts of future shocks.”

The key initial step is to put strong, prudent macroeconomic frameworks and automatic stabilizers in place to shield labor markets from potential crises. Sound fiscal and monetary policies can preserve macroeconomic stability and avert system-wide financial strain in the face of a shock. Fiscal reforms, including less distortive taxation, more efficient public spending, financially sustainable pension programs and clear fiscal rules are the first line of defense against crises.

Countercyclical income support programs, such as unemployment insurance and other transfers to households during downturns, limit the damage caused by contractions and help economies recover. One of the region’s challenges, though, is that large segments of the workforce are informal and thus cannot be reached through traditional unemployment insurance.

Also, it is crucial to increase the capacity of the region´s social protection and labor policies, blending these policies into systems that provide income support and prepare workers for new jobs through reskilling and reemployment assistance. Governments’ quick reaction to expand some social protection and labor programs in the wake of the pandemic can lead to progress in building better and more integrated social registries. This is feasible in the short run and can make a difference in the reach of these programs.

But stronger macroeconomic stabilizers and reforms to social protection and labor systems are not enough. Jump-starting job recovery by supporting vigorous job creation is also needed. This effort will require tackling structural issues. Competition policies, regional policies and labor regulations are key areas. If countries don’t address these fundamental issues, recoveries will remain characterized by sluggish job creation.

Continue Reading

Reports

Critical Reforms Needed to Reduce Inflation and Accelerate the Recovery

Published

on

While the government took measures to protect the economy against a much deeper recession, it would be essential to set policy foundations for a strong recovery, according to the latest World Bank Nigeria Development Update (NDU).

The NDU, titled “Resilience through Reforms”, notes that in 2020 the Nigerian economy experienced a shallower contraction of -1.8% than had been projected at the beginning of the pandemic (-3.2%). Although the economy started to grow again, prices are increasing rapidly, severely impacting Nigerian households. As of April 2021, the inflation rate was the highest in four years. Food prices accounted for over 60% of the total increase in inflation. Rising prices have pushed an estimated 7 million Nigerians below the poverty line in 2020 alone.

The report acknowledges notable government’s policy reforms aimed at mitigating the impact of the crisis and supporting the recovery; including steps taken towards reducing gasoline subsidies and adjusting electricity tariffs towards more cost-reflective levels, both aimed at expanding the fiscal space for pro-poor spending. In addition, the report highlights that both the Federal and State governments cut nonessential spending and redirected resources towards the COVID-19 response. At the same time, public-sector transparency has improved, in particular around the operations of the oil and gas sector.

The report however, notes that despite the more favorable external environment, with recovering oil prices and growth in advanced economies, a failure to sustain and deepen reforms would threaten both macroeconomic sustainability and policy credibility, thereby limiting the government’s ability to address gaps in human and physical capital which is needed to attract private investment.

“Nigeria faces interlinked challenges in relation to inflation, limited job opportunities, and insecurity”, said Shubham Chaudhuri, the World Bank Country Director for Nigeria. ”While the government has made efforts to reduce the effect of these by advancing long-delayed policy reforms, it is clear that these reforms will have to be sustained and deepened for Nigeria to realize its development potential.”

This edition of the Nigeria Development Update proposes near-term policy option organized around three priority objectives:

  • Reduce inflation by implementing policies that support macroeconomic stability, inclusive growth, and job creation;
  • Protect poor households from the impacts of inflation;
  • Facilitate access to financing for small and medium enterprises in key sectors to mitigate the effects of inflation and accelerate the recovery.

“Given the urgency to reduce inflation amidst the pandemic, a policy consensus and expedite reform implementation on exchange-rate management, monetary policy, trade policy, fiscal policy, and social protection would help save lives, protect livelihoods, and ensure a faster and sustained recovery” said Marco Hernandez, the World Bank Lead Economist for Nigeria and co-author of the report.

In addition to assessing Nigeria’s economic situation, this edition of the NDU also discusses how the COVID-19 crisis has affected employment; how inflation is exacerbating poverty in Nigeria; how reforming the power sector can ignite economic growth; and how Nigeria can mobilize revenues in a time of crisis.

Continue Reading

Reports

Indonesia: How to Boost the Economic Recovery

Published

on

jakarta indonesia

Indonesia’s economy is projected to rebound from the 2020 recession with 4.4 percent growth in 2021. The rebound is predicated on the pandemic being contained and the global economy continuing to strengthen, according to the World Bank’s latest Indonesia Economic Prospects report (“Boosting the Recovery”), released today.

The report highlights that although consumption and investment growth were subdued during the first quarter of 2021, consumer sentiment and retail sales started to improve during the second quarter suggesting stronger growth momentum. However, it also notes that pandemic related uncertainty remains elevated due to risks of higher viral transmission.

“Accelerating the vaccine rollout, ensuring adequate testing and other public health measures, and maintaining strong monetary and fiscal support in the near term are essential to boosting Indonesia’s recovery,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste. “Parallel reforms to strengthen the investment climate, deepen financial markets, and improve fiscal space for longer-term sustainability and growth will be important to further build consumer and investor confidence.”  

The report recommends the government to develop a well sequenced medium-term fiscal strategy, including clear plans to improve tax revenues and fiscal space for priority spending. It also highlights the importance of maintaining accommodative monetary policy and stimulating private credit to support the real sector while monitoring external and financial vulnerabilities.

The report highlights the critical role of adequate social assistance in mitigating rising poverty risks. It finds that maintaining the 2020 social assistance package in 2021 could potentially keep 4.7 million Indonesians out of poverty.  

This edition of the report also looks at the possibilities for Indonesia to boost higher productivity jobs and women’s economic participation.

“Indonesia has reduced poverty through job creation and rising labor incomes over the past decade. The next stage is to create middle-class jobs that are more productive, earn higher incomes, and provide social benefits,” said Habib Rab, World Bank Lead Economist for Indonesia. “While the crisis risks have exacerbated Indonesia’s employment challenges, it is also an opportunity to address the competitiveness and inclusion bottlenecks to creating middle-class jobs and strengthening women’s participation in the economy.”

The report recommends a four-pronged reform strategy to address these jobs-related challenges:

  • Mitigate employment losses by maintaining adequate job retention programs, social assistance, training, and reskilling programs until the recovery is stronger.
  • Boost productivity and middle-class jobs by promoting competition, investment, and trade.
  • Equip the Indonesian workforce to hold middle-class jobs by investing in education and training systems and programs to improve workers’ skills.
  • Bring more women into the labor force and reduce earning gaps between men and women by investing in child and elderly care and promoting private sector development in the care economy.

The Indonesia Economic Prospects Report is supported by the Australian Department of Foreign Affairs and Trade.

Continue Reading

Publications

Latest

Eastern Europe53 seconds ago

Belarus Under Sanctions, What Next?

Russia has unreservedly expressed its solidarity and unflinching support for Belarus after the United States and European Union slapped the...

Europe2 hours ago

Geopolitics For Giants And Dwarfs

Authors:  Zlatko Hadžidedić and Adnan Idrizbegović June 2021 was far more than just dynamic in terms of global politics: President...

Science & Technology5 hours ago

Say “hello” with the sixth generation of mobile network (6G)

The recent introduction of 5G across the globe  has directed the interests of telecom experts to the development of the...

International Law8 hours ago

Human Rights violation in Palestine: A serious concern

Palestinians had long been victim of brutal Israeli assailant forces. The innocent Palestinians civilians and children are not only victim...

East Asia12 hours ago

Centenary of the Chinese Communist Party: 100 years of Prosperity and Greatness

Since its establishment, the Communist Party of China has made many national contributions and has become the main engine of...

Tech News15 hours ago

ACCCIM and ANBOUND Co-Hosted Forum on Digital City Development in the Post-COVID Era

After more than a year since the emergence of the Covid-19, our modern world faces unprecedented threats to our public...

Economy17 hours ago

Indonesia’s political will is the key to a successful carbon tax implementation

Authors: I Dewa Made Raditya Margenta, and Filda C. Yusgiantoro* A carbon tax should be overviewed as an oasis of...

Trending