A report compiled by the UN backed agency the International Labour Organisation says that the increasingly terrible jobs situation will prove to be a disaster for the region. Civil unrest and the threat of violence is already on the rise as citizens grow increasingly angry and grow more and more desperate at the lack of work.
Without a plan to avert the deepening crisis the agency warns that unemployment could climb from the current level of 17.4 million by another 4.5million. Youth unemployment is already out of control with nations such as Spain and Greece showing that over 50% of 15 to 25 year-old’s are out of work. Unless the situation is changed then we can expect the future of the Eurozone to be filled with violence and upset as today’s youth grow into adults and forcibly take what they feel they are owed.
The unemployment rate in advanced economies will stay high at nearly 8% until the end of next year, meaning that some 48m people are without work.
“The Eurozone is facing its worst crisis since the creation of the single currency,” International Labour Organization Director-General Juan Somavia told reporters at the launch of a report on the Eurozone crisis. “Unemployment is on the rise in the majority of the 17 members and if policy does not change quickly, it is possible that 4.5 million jobs will be lost in the next four years. Unless targeted measures are taken to increase real economy investments, the economic crisis will deepen and the employment recovery will never take off, it’s not only the Eurozone that’s in trouble, the entire global economy is at risk of contagion.”
There are many signs that the Worlds economy is once again heading for a slowdown. The Chinese government revealed that industrial output has weakened and the jobless level in the United States has disappointed in recent weeks. Trade data out of China showed that the growth rate for imports fell by half from the previous month’s level to 6.3pc. Export growth also declined to 11.3pc from May’s 15.3pc amid European and US economic weakness. China’s economic growth has fallen to its lowest level since the 2008 global crisis.
The head of the International Monetary fund (IMF) Christine Lagarde has warned that nations must avoid adopting protectionist policies. In a speech in Tokyo last week she warned that the IMF has cut its growth predictions for the global economy. In May the head of the World Trade Organisation (WTO) Director General Pascal Lamy warned that an increase in protectionist policies across the world’s 20 major economies had hit 4.0% of the group’s trade.
“Recovery is still possible within a single currency setting, but the window of opportunity is closing, unless policies change, all — and I underline all countries in the Eurozone, will be hit, both those under stress and their wealthier counterparts,” Somavia added.
The Pound to Euro exchange rate is currently trading at 1.266
The Pound to US Dollar exchange rate is currently trading at 1.556
The Euro to Australian Dollar exchange rate is currently trading at 1.196
The Euro to US Dollar exchange rate is currently trading at 1.229
The Euro to Pound exchange rate is currently trading at 0.789
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