Thursday, 3 November 2011

New Recession 'Will Lead To Civil Unrest Worldwide'

New Recession 'Will Lead To Civil Unrest Worldwide':

The world is on the brink of a new jobs recession which could spark social unrest in dozens of countries, a report warned today.

The grim warning from the International Labour Organisation came as leaders of the G20 rich nations prepared to meet for a crisis summit in Cannes this week.

"We have reached the moment of truth. We have a brief window of opportunity to avoid a major double-dip in employment," said Raymond Torres, director of the ILO's International Institute for Labour Studies.

In 45 out of 118 countries examined, the risk of social unrest is rising, according to the World of Work Report 2011.

It will take at least five years for employment in advanced economies to return to pre-crisis levels, it added.

Fears of another recession grew today as a leading think tank slashed its eurozone growth forecast. The OECD predicted that the single currency area will almost come to a halt next year, with growth of 0.3 per cent. A slowdown would hit Britain's economic prospects.

The latest GDP figures for the UK, to be published tomorrow, are also expected to be grim. Labour leader Ed Miliband today argued that the UK was facing a "perfect storm" of rising unemployment and inflation, falling living standards and inequality.

But David Cameron warned against politicians talking down the economy and pledged an "all-out mission" to kick-start infrastructure projects.
The OECD called for bold action on the economy as it was just as "imperative" as that agreed at the G20 summit in London in 2008 which "avoided a second Great Depression".

It cut its GDP growth prediction for the eurozone next year to 0.3 per cent, compared with two per cent made in May, and reduced its prediction for next year from two per cent to 1.6.

The OECD also warned that some eurozone countries could see contractions of up to five per cent by the first half of 2013 if EU leaders fail to restore confidence and the debt crisis worsens.

The forecast for America's economic growth next year was also cut from 3.1 per cent to 1.8 per cent.

OECD secretary general Angel Gurria warned the slowdown would hit Britain. He backed the "strong message" sent by Chancellor George Osborne to the markets by sticking to his deficit cutting plans but hinted he could tinker with them to boost growth.

The Prime Minister said he had given the go-ahead for two power plants in the north of England that will create 1,000 construction jobs.

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