EDITORIAL

The Unemployment Predicament: A Development Challenge

Employment creation poses a major challenge to development. Thus, the 2005 Summit Outcome Document rightly emphasized productive and decent employment as a means of bolstering the achievement of the Internationally Agreed Development Goals, including those contained in the Millennium Declaration.

Unemployment has increasingly become a global concern even while, for the past 11 consecutive quarters, global GDP has grown by an annual rate of 4 per cent. In many countries in all regions of the world, economic growth has not kept pace with labour force increases. In most cases, GDP growth has neither yielded adequate employment opportunities to make a significant dent on poverty nor absorbed new entrants into the workforce. Furthermore, in developing countries, the informal sector accounts for a sizeable part of the economy, and seasonal unemployment and disguised unemployment are widespread. Despite rapid economic growth, jobless growth, seasonal unemployment and dis-guised unemployment continue to adversely affect the well-being of people across countries. The long-term social implications of these phenomena are also matters of persistent concern for policy-makers.

In all regions, inclusive growth, entailing the participation of all sections of the population in the tangible benefits of development, remains an unfulfilled dream. Most developing countries face the emerging challenge of ensuring gainful employment for women, young people, and marginalized groups. Among other factors, lack of experience and skills, inadequate education, as well as an over-regulated labour market, place these groups at a disadvantage even when higher economic growth translates into overall increased employment opportunities. The lack of progress in developing labour-absorbing technology exacerbates the predicament of balancing technological advancement with creating more employment for a burgeoning labour force.

The contributions of targeted programmes and micro-finance initiatives by national governments and civil society entities have been significant in creating employment opportunities. They have also had significant impact on the empowerment of women, young people, and marginalized groups. The lessons learned from these programmes and initiatives are critical for development across regions.

Creating opportunities for regional cooperation in support of national employment strategies, programmes and policies could significantly contribute to increasing productive employment and decent work for all. Inter-regional, inter-country and inter-subregional exchange of experiences and good practices are central to accelerating employment generation. In this regard, the Regional Commissions, in cooperation with organizations such as the ILO, will continue to play vital analytical and advocacy roles in supporting national employment creation programmes which ultimately achieve an all-pervasive improvement in the quality of life.

Kim Hak-Su

Executive Secretary of ESCAP

and current Coordinator of the Regional Commissions