The International Labor Organization (ILO), a specialized agency within the United Nations, announced predictions that global unemployment could reach 38 million workers, a rate of 7 percent, in 2009. Global unemployment increased by 14 million in 2008, a drastic change following four years of decline in the unemployment rate. The ILO was established in 1946 to draw up and oversee international labor standards with input from member states.
In the recently published study "The Financial and Economic Crisis: A Decent Work Response," the ILO applauded countries that have "attempted to address the crisis through the adoption of massive financial rescue measures and the announcement of fiscal stimulus packages." The study examined the economic rescue responses of 32 countries. However, the organization claims these measures "do not focus sufficiently on employment" and that governments have included "only limited social dialogue with employers and unions." ILO director-general Juan Somavia stated, "The financial, trade, economic, employment and social roots of the global crisis are interlinked and so must be the policy responses" in order to avoid a "prolonged and severe" job crisis.
The study also reported that following former financial downturns, the employment market took four to five years longer to recover than the general economic recovery. The agency suggests the need for a more global, coordinated solution as countries with currently stable financial systems may soon be effected. This outlook seems to also be supported by the World Trade Organization (WTO) which has predicted a 9 percent decline in global trade this year, the greatest contraction since World War II. WTO director-general Pascal Lamy said in a published statement that "many thousands of trade-related jobs are being lost," but pointed out that "trade can be a potent tool in lifting the world from these economic doldrums." The WTO also observes global market and employment conditions, examining the various rules of trade between nations.
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