International Labour Organization Warns EU could lose 4.5 M jobs

The ILO has warned that the current and continued austerity measures could create a further loss of 4.5 million jobs in the Euro zone.

The eurozone could lose 4.5 million more jobs in the next four years unless the region shifts away from austerity, the International Labour Organization (ILO) has warned.

That rise would take unemployment in the 17-nation bloc to 22 million.

The ILO said a concerted policy shift away from austerity towards job creation was needed.

“It’s not only the eurozone that’s in trouble, the entire global economy is at risk of contagion,” it said.

European Union unemployment is at 11.1 percent official figures show. Unemployment is highest in Spain where 1 in 4 is out of work. The official tally is only talking into account people who want to find a job, but haven’t found one, which means the real unemployment is higher.

Youth unemployment is at a record high at 22.6 percent as more nations have to institute austerity measures to comply with EU fiscal targets. Greece, Portugal, Spain and Italy have the biggest targets to overcome.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza