World of Work Report 2012: Better Jobs for a Better Economy

[Excerpt] The World of Work Report 2012 provides a comprehensive analysis of recent labour market and social trends, assesses risks of social unrest and presents employment projections for the next five years. The report emphasizes that while employment has begun to recover slowly, job quality is deteriorating and there is a growing sense of unfairness. Moreover, given the pressure on governments to rein in expenditure, policy efforts have focused on structural reforms to boost employment creation. However, if policy instruments are not carefully designed, they could exacerbate the employment situation and aggravate further equity concerns, with potentially long-lasting adverse consequences for both the economy and society. The report addresses the following questions: • To what extent has the slow recovery aggravated social conditions, including falling incomes, deepening poverty and worsening inequality? • Have countries gone too far, too fast with fiscal consolidation? How should they support recovery while meeting fiscal goals in the medium term? • What can be expected from recent labour market reforms? • How can investment be boosted so as to ensure a long-lasting recovery in both the economy and jobs? • What have been the barriers to implementing a more job-centred and equity-enhancing policy approach? Why has the business-as-usual scenario maintained its centrality despite the increasing risk of social unrest? This report calls for a carefully designed policy approach that takes into consideration the urgent need to create quality jobs while at the same time laying the ground for a more productive, fairer economy and labour market

Making Migration a Development Factor: The Case of North and West Africa

[Excerpt] Although there are multiple “push” and “pull” motivations to migrate (e.g. cultural, family reunification, social conflict, etc.), economic reasons, notably the search for better jobs and decent incomes, remain central to the decision. This report presents novel evidence in this respect, namely: -- female migrant workers from Morocco residing in France earn 16 times more than the average earnings of women in Morocco (for men, the figure is close to 6 times); -- Algerian and Tunisian migrant workers earn between 3.4 and 8 times the average earnings in their country of origin; and, -- in Spain, migrant workers from Morocco earn between 4.5 and 10.5 times the average earnings of men and women, respectively, in Morocco. Migration can be a positive factor in the development of countries of origin, notably through two main channels: remittances and return migration. Remittances are an important source of financial flows to the region, having tripled since 1990 to reach over US$12 billion in 2008. For Morocco and Senegal, this amounts to 8 per cent or more of GDP. These financial flows can assist development directly by sustaining incomes in the countries of origin, and indirectly to the extent that remittances help to support education, infrastructure and investment in the private sector. As a result of the global crisis, remittances to the region only grew by just over 4 per cent in 2008, compared to over 23 per cent in 2007, and they fell by an estimated 10 per cent in 2009. This decline is more pronounced than in other developing regions, where the estimated decline in remittances is around 6 per cent. Similarly, the return of migrants can contribute to development through the promotion, mobilization and utilization of productive resources. Many return having gained valuable experience and knowledge through the migration process. Some returnees invest savings accumulated abroad and engage in entrepreneurial activities, with significant multiplier effects. In practice, however, evidence with respect to the link between remittances and return migration on the one hand and development on the other is weak. The report finds that between two-thirds and three-quarters of remittances to North and West Africa are destined for either the spouse/partner or parent, with the bulk of remittances used to support household subsistence. This financial inflow directly supports the living standards of migrants\u27 families and their communities. But the broader multiplier effects on employment and the economy are limited in the countries under review

Adjustment capacity of labour markets of the Western Balkan countries

Study on the adjustment capacity to shocks of EU candidate and potential candidate countries of the Western Balkans, with a focus on labour markets, and background studies on several countries of the region. The main question addressed in this study is the performance of the labour markets in the Western Balkans; to find out whether they can deliver growth of employment and decline of unemployment in the medium run and whether they can withstand short-term shocks due to changes in demand or supply. The study finds that there is an important case for improving the rule of law and the quality of public services in general in the fight against very low participation and employment rates in the region, as well as very high unemployment. Wages, with some exceptions in specific sectors, do not seem to be mis-aligned with respect to productivity developments. There is some indication of possible positive effects from adjusting employment protection legislation, especially for women. The study also identifies an important role for income policies in some of the countries as an important complement to labour market policies.Adjustment capacity, external shocks, Western Balkan countries, South-East Europe, labour markets, EU candidate countries, potential candidate countries, employment protection legislation, rule of law, wages, productivity, taxwedge, remittances, migration