Govt must promote sustainable growth to create more jobs: WEF report

Davos: Governments should make targeted investments in infrastructure sector and also promote sustainable growth to create more job opportunities, says a report.

The World Economic Forum (WEF) report said that short term labour market prospects are not encouraging for many countries.

“It has been six years since the start of the global financial crisis and job creation remains weak in many G-20 countries, preventing a significant decline in the often record-high levels of unemployment and under employment,” the report said.

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Suggesting measures to bolster employment opportunities, WEF said that policymakers should make targeted investments in infrastructure to improve long-term productive potential and support the transition to a low-carbon economy.

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According to the report, taxation should be shifted from “employment to environmental ‘bads’ and ally this with policies to promote environmentally sustainable growth”.

Other suggestions include implementing flexible schemes to promote job retention and job sharing until the recovery is secured.

Besides, the report has suggested implementation of well-designed and managed migration policies to respond to demographic change, address skills shortages and maintain the growth potential of the economy.

Global unemployment is set to rise this year, with more than 200 million people without work across the world, as per the International Labour Organisation (ILO).

“Little respite is on the horizon in 2014 without significant changes in policy,” WEF said.

The report, prepared by the WEF’s Global Agenda Council on Employment, has come out with recommendations for governments, businesses and trade unions.

PTI