• The job market is not very different from what it was
a few years ago.
• Unemployment remains elevated.
• Growing number of discouraged youth.
• Trends in Labor productivity and real wages reveal
pressure on employment quality.
employment and slowed progress in reducing
• A recovery in growth that has not brought about a
comparable recovery in employment.
• Global unemployment began to grow in 2008 as the
crisis increased uncertainty and led to reduced
hiring.This was followed by a massive increase of
more than 22 million in global unemployment in
2009.The year 2013 brought little change to this
elevated level of unemployment.
• “In the fifth year after the outbreak of the global
growth has decelerated and unemployment has
started to increase again, leaving an accumulated
total of some 197 million people without a job in
2012.Moreover, some 39 million people have
dropped out of the labor market as job prospects
proved unattainable, opening a 67 million global jobs
gap since 2007.
• Despite a moderate pickup in output growth
expected for 2013-14,the unemployment rate is set
to increase again and the number of unemployed
rate is set to increase again and the number of
unemployed worldwide is projected to rise by 5.1
million in 2013,to more than 202 million in 2013 and
by another 3 million in 2014.A quarter of the increase
of 4 million in global unemployment in 2012 has
been in the
advanced economies in other
regions,with marked effects in East Asia,South Asia
and sub-saharan Africa.”
Trends report 2013
• In South Asia several countries have seen boom in
there economies.Export orders from many advanced
countries have been pouring into South Asian
countries. Srilanka, Bangladesh, India have all seen
a surge in the foreign & domestic investment and
• In the year 2013 the macro-economic indicators
show an improvement in South Asian market but the
job market is getting weaker again.Most of the jobs
are in the IT/Telecom sectors.These sectors are still
experiencing a comparatively better economic
• Most of the jobs available in these sectors are either
“lovely” high wage jobs or they are “lousy” low wage
jobs.Organizations are either looking for better
executives or more staff is being hired at the lower
level. The most effected group among job seekers
are the middle managers.
• “The three best performers in the region continue to
be Srilanka, Bangladesh, India.GDP growth in 2012
in these three countries is estimated to 6.9(revised
down to 6.1 percent in july 2012), 7.5 and 5.9
percent respectively (IMF 2012b).
• South Asia has been the second fastest growing
region in the world in recent years, mostly thanks to
India’s contribution, and is likely continue to be so
despite the slowdown and domestic constraints.”
Global Employment Trends 2013 report
• Thus,like many regions,growth has failed to deliver a
significant number of better jobs in the formal
economy.Formal economy is where people work to
receive a regular wages and are assured certain
rights e.g.paid holidays,sickness leave.
• Wages are taxed using a comparable definition for
the latest year available, the share of workers in
informal employment in the non-agriculture sector
83.6 percent in India (2009-10) and 62.1 percent in
Overall, the estimated labor force participation rate
for women is just 31.8(2012) which only exceeds the
rates for the Middle East (18.7 percent) and North
Africa 24.4 Percent).
• The major challenge for South Asia is to include
workforce.The real challenge is to produce skilled
workforce.Majority of the youth in South Asia is
looking towards freelance work on the web or
working at unorganized jobs.This will ruin many
years of work.
we will gain out of this process will be an
inexperienced workforce that is not mature enough
to work in organized and specialized jobs.
• Against the backdrop of slowing world trade and
stable oil prices, economic growth in the Middle East
region has slowed in 2012 and is expected to
accelerate only moderately in 2013 and beyond.
• On the back of this deceleration of growth rate in
most of the region ,unemployment is set to rise
again.Following a gradual but steady decline over
most of the 2000’s unemployment rates are
years.Unemployment rates in the Middle East are
varied and there are multiple reasons for growth in
Countries(with Most unemployment
• In 2012,the youth unemployment rate stood at 28%
percent and is expected to increase further as
regional economic growth is slowing down.High
joblessness among young people in Middle Eastern
countries is not caused by fast labor force
activity rates are low in the region.
• Almost 3 million young people enter the job market
each year in the Arab world.Job creation is the most
challenging issue facing the region. The youth
unemployment rate is nearly double the global rate
years.There are twice as many women as men
looking for employment across the region.
• Youth rates of employment are very sensitive to the
business cycle, meaning that recovery for young
people is highly uncertain, which could mean many
hard years ahead for them.
• The internationalization of the production of goods
developments will lead to higher international
decades.Over the long run, income growth and the
prosperity of nations will depend on the availability of
a sufficiently large workplace with a range of skill
levels and the ability to adopt to the changing needs