OECD: worse than expected outlook signals need to maintain stimulus and prioritise jobs
Following the release of the OECD’s Interim Economic Assessment that signals a likely slowdown in growth to 1.5% in the G7 economies in the second half of the year, John Evans, TUAC General Secretary said “the OECD figures show that a significant part of the global economy is still on a life support system provided by public sector stimulus. It would be utter folly for governments to remove that stimulus in the months ahead – rather they should step up action to support and create jobs to give hope and confidence to employees and their families”.
Unions will be attending a major conference organised by the International Monetary Fund (IMF) and the International Labour Organisation (ILO) in Oslo on September 13 on employment and the recovery. They will be arguing that priority must be given to achieving a faster recovery in GDP, with higher employment intensity. Given this objective, stimulus policies should be continued in countries where the recovery is not self-sustaining and unemployment is not falling to pre-crisis levels, i.e. the vast majority of countries. Governments should strengthen the focus on jobs in their recovery programmes by giving priority to projects with higher employment content.
“The global economic crisis is far from over. Working people are being hit hard and unemployment and poverty continue to rise. Governments must not step back from their responsibilities in getting the world back to work,” said ITUC General Secretary, Sharan Burrow.
Download the OECD Interim Assessment.