WORLD EMPLOYMENT - ILO PERSPECTIVE

The ILO report on World Employment 1996-97 attempts to understand unem ployment in the light of globalisation and technological change in the major economic regions of the world. It takes a positive view of glob alisation as promoting efficiency and enabling high-productivity, high -wage jobs. The report does not hold labour market rigidities. as resp onsible for unemployment in either industrialised or developing countr ies. The macro-economic environment - appropriate fiscal policy, wage setting institutions, and welfare programmes - is seen as central to g rowth and employment creation. The report downplays the fact that ther e is little room for fiscal:manoeuvre in most countries so that intere st rates may rise or that debt-deflation or the size of the welfare st ate may be responsible for the economic downturn in industrialised cou ntries. Moreover, balanced growth is not a good option for developing countries as it results in enlarging low-paid, dead-end, informal sect or jobs.