25 October, 2011In a statement to the G20 leaders meeting in Cannes on November 3-4 the Global Unions assert that good jobs are the only successful recipe for recovery and sustainable growth, that employment creation must be placed at the centre of macro-economic policies and fiscal policy adjusted to support growth and employment creation.
Unemployment now represents the largest single threat to recovery.
Together with rising long-term unemployment, high youth unemployment threatens to weaken long-term growth potential. Slowing growth and rising unemployment, combined with the rise in inequality of incomes in most G20 countries, threaten the recovery, weaken long-term growth and raise the risk of a major social explosion and political instability.
G20 Leaders must give a strong message of confidence to working families, not just financial markets, by breaking the vicious circle of jobs insecurity, depressed wages, suppressed consumption and blocked investment. A plan for jobs and recovery must not only stem the crisis but shape a post-crisis world that is economically, socially and environmentally just and sustainable.
The G20 must:
- Fulfil their Pittsburgh commitment to put "quality jobs at the heart of the recovery" by establishing differentiated but coordinated jobs targets for the G20 countries and take immediate measures of job-intensive infrastructure programmes, green jobs investment and labour market programmes to raise skills;
- Strengthen labour market institutions, especially collective bargaining, negotiated and legislated minimum wages, support for low-income groups so as to reduce income inequality, and a jobs pact for youth;
- Establish a social protection floor that is supported by adequate funding according to levels of development;
- Implement rapidly effective reforms to the financial sector and establish a financial transaction tax.
G20 Finance Ministers have not included employment as one of the indicators for macroeconomic policy. Employment targets must now be incorporated into national economic programmes.
Read the full statement here.