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Quality formal employment is lagging behind the increase in the number of job-seekers and informal employment remains very high in emerging economies .
Negative real wage growth was recorded in 2012 in several developed countries , while many emerging economies show a decline in the pace of wage growth .
Income inequality is still very high in many countries . Against this background , every G20 country is facing a massive jobs challenge .
The IMF has reduced again its global forecast growth for 2013 and 2014 . At low growth rates we will not see significant improvement in the employment situation , and this comes on top of 5 years of world economic downturn . Therefore the ILO , the IMF , the OECD and the World Bank are united in saying that more attention is needed to employment .
Against this background , every G20 country is facing a massive jobs challenge
This is the message the ILO brings to this G20 meeting . Policies can correct this situation ; and coordinated policies across the G20 will be even more effective . That was what worked in 2009 and it would work again . Policies that have a high employment impact will also be those that strengthen demand and hasten economic recovery . They are not the same across all countries , but here are some examples of the type of policies that have been tried with success in the past .
… most governments work within a tight fiscal space , but they can still promote further investment …
Take infrastructure : most governments work within a tight fiscal space , but they can still promote further investment , particularly in infrastructure , to generate employment across G20 countries . Australia , Brazil , Canada , Indonesia , Japan and South Africa have all invested in infrastructure projects in recent years .
Some countries have enhanced the level and coverage of minimum wages to address working poverty and inequality while contributing to domestic demand . China , Brazil , India and Indonesia are among the countries that have raised minimum wages .
Countries have expanded social protection systems , in fiscally sustainable ways , to increase the resilience of households and to reduce poverty . Basic protection coverage , applying the ILO concept of a social protection floor , has been significantly expanded in China , India , Brazil , and Mexico , among others .
Some countries have developed and strengthened skills development programmes and improved national educational systems and others have facilitated credit availability , especially for SMEs .
Hiring subsidies were introduced successfully in Argentina , Australia , Brazil , Canada , France and the US . And countries have also put in place special employment programmes directed to specific groups : women , rural workers , and persons with disabilities , again in several countries .
In terms of coverage , an estimated 2.5 % of the labour force is benefiting from the measures implemented since 2010 . And the average cost of these measures is estimated at just below 1 % of GDP .*
Such examples show that G20 countries are implementing a range of measures to generate employment , but the ILO considers that there is room and need to do more in these areas because of the scale of the problem we face , and the urgency involved , and to fulfil the G20 ’ s overall goal of robust , sustainable and balanced economic growth .
When Leaders meet in St . Petersburg in September they will be looking for a menu of options to step up action for employment as a means to strengthen economic recovery . It is exactly that menu of options that we are looking for from the meetings this week .
Such examples show that G20 countries are implementing a range of measures to generate employment
The experience suggests that high employment levels and inclusive growth can be achieved through a well-designed combination of supportive macroeconomic policies and employment , labour market and social protection policies .
Achieving this will require closer cooperation between Labour and Employment Ministers and Finance Ministers .
This fourth Labour Ministers - and first-ever Labour and Finance Ministers ’ - Meeting provides the moment for bold and decisive action .
Thank you .