International Labor Organization Predicts Global Unemployment Will Soon Top 200 Million

The International Labor Organization (ILO), a specialized agency within the United Nations, announced predictions that global unemployment will reach 200 million soon. The ILO was established in 1946 to create and oversee international labor standards with input from member states. The ILO works within the U.N. to bring together representatives from governments, employers and workers in order to shape policies.

Industrial Info Resources (Sugar Land, TX) reports that this prediction came after a review of global growth estimates from the International Monetary Fund, U.N. reports, and reports available from various countries. In a published statement, ILO Director-General Juan Somavia stated the early estimates showed the "number of unemployed could rise from 190 million in 2007 to 210 million in late 2009." According to the agency, the global financial crises at the root of the unemployment rise will affect construction, automotive, tourism, finance, services and real estate sectors the most. Somovia claimed, "This is not simply a crisis on Wall Street, this is a crisis on all streets." The agency reports the number of individuals living on less than a dollar a day could increase by 40 million.

The latest numbers published by the Department of Labor place U.S. unemployment at 6.1 percent, a steady rate from the previous month. However, certain industries such as construction and manufacturing have suffered significant layoffs. The Bureau of Labor and Statistics reported 2,269 mass layoff actions in the month of September, the highest level since activity surrounding Hurricane Katrina in September 2005; by definition mass layoffs involve job cuts of at least 50 persons from a single employer. Of these mass layoffs, 603 (28 percent) occurred within the manufacturing sector.