Thursday, January 25, 2007

Asian economic growth not reflected in employment: ILO

25 January 2007
AFP

BANGKOK: Not everyone is benefiting from China's phenomenal economic growth, a UN labour agency report showed, with unemployment levels in Asia rising slightly in 2006.

The International Labour Organisation's Global Employment Trends report said that despite economic growth of 8.0 percent in East Asia last year, the highest in the world, unemployment rose 0.1 percent to 3.6 percent.

However, the ILO also found that poverty in East Asia had decreased, while the number of unemployed people in Southeast Asia was steadying after a gradual decline since the 1997-1998 financial crisis.

"Low and stable unemployment rates, moderate population growth and positive growth prospects in the near-term make it likely that labour markets (in East Asia) will remain stable in 2007," the ILO report said.

The number of East Asian workers whose families were living on less than two dollars a day fell from 61.9 percent in 1996 to 44.2 percent last year, below the global average of 47.4 percent.

But the report warned that as East Asia – which includes China, Japan, the two Koreas and Mongolia – ploughed toward its goal of becoming a middle-income region, it had to be aware of a growing gap between the rich and poor.

"East Asian countries are falling behind in domestic integration," the report said. "Inequality has risen, not just in income levels, but also in schooling and access to basic services."

The outlook for Southeast Asia and the Pacific was slightly more upbeat, with fast growth in Cambodia fuelled by tourism and the garment sector, and similar growth in Vietnam caused by soaring private investment.

The ILO said the effects of the financial crisis, which sent unemployment rocketing from 3.7 percent in 1996 to 6.6 percent in 2005, were still being felt across those regions, with overall economic growth in 2006 lower than in other parts of the continent.

However, the unemployment rate in the region stretching from Myanmar across to the islands of Fiji did remain steady at 6.6 percent in 2006 compared with 2005.

"Despite persistent increases since the Asian financial crisis, overall unemployment rates in the region remain relatively low compared to other parts of the world," it said.

In South Asia – dominated by India, Sri Lanka, Bangladesh and Pakistan – unemployment also remained steady from 2005 at 5.2 percent, up from 4.4 percent in 1996.

The region was also marked by a significant discrepancy between the number of men and women out of work.

The male unemployment rate in 2006 was 4.9 percent, up from 4.2 percent in 1996, while the rate for women stood at 6.2 percent, up from 4.9 percent.

Poverty rates had fallen, particularly in India, the report said, but some 87.2 percent of people were still considered working poor, living on less than two dollars a day, far higher than in the rest of Asia.

"As is the case in all developing regions, unemployment is only the tip of the iceberg," the ILO said in its report.

1 comment:

Anonymous said...

Unemployment rate in Asia is 3.6%
and people making less than 2 USD
per day?

I wonder how they measure their
unemployment.

But where is the surprise?

The corrupted UN labour agency did
it again. Either they are sleeping
on the job or they are just lying.