ILO World Work Report 2014 - Highlights

• Developing Countries are catching up with Advanced Economies: Between 1980 and 2011 per capita income of developing countries grew on average by 3.3% (in 140 Countries) and Advanced Economies by 1.8%
• Cross-Country difference is significant in both developing and advanced economies.
• Countries investing in quality jobs making progress
• Half the working forces (around 1.45 Billion) in developing countries are still self-employed or undertake unpaid employment – It means no guaranteed income, social protection or investments in health or education – in South Africa and Sub-Saharan Africa 3 out of 4 workers are in vulnerable employment
• Working poverty (earning less than US $2/day) has reduced – one third of total employment (839 million workers) are still under - it was half in 2000.
• 200 million new jobs need to be created over next 5 years to keep pace with growing working population – raises issue of Youth Unemployment – Youth Unemployment rate 12% (3 times the unemployment rate of adults) in developing countries – high in Middle East and North African regions.
• Qualitative education is also a problem – literacy rate increasing but not quality education in developing countries – gap between skills acquired and job available.
• Lack of quality jobs is the reason for emigration in developing countries – wage difference 10 to 1 – 230 million people living in other country – roughly half from South Asia.
• For generating quality jobs: Economic base need to be diversified and enhance ability of sustainable enterprises.
• Manufacturing tends to faster economic growth and produce quality jobs – report also highlights successful experience based on agricultural and rural development, efficient and equitable use of natural resources and services that connect with rest of economy.
• Natural resources restraints and Environmental limits can be turned into advantage by seizing technological leapfrogging.
• Extend well-designed social protection – helps to reduce poverty, inequality and vulnerable employment and also boosts economic growth and quality jobs. (Activities like Bolsa Familia in Brazil, MGNREGA in India are fruitful providing additional incomes to households)
• Widening income inequalities may erode social cohesion and intensify social unrest as it happened in Arab and Asian countries.
• Senegal, Peru and Vietnam – increase in proportion of wage and salaried workers over past 2 decades – significant reduction in working poverty and higher productivity – even in global meltdown these countries grew 1% faster than other emerging economies.
• Finding from study – sizeable proportion of wage-earners in society helps to reduce income inequality and under employment in workforce - If inequality is more has impact in economy by reducing consumption

• Enforcement of statutory minimum wages across different economic sectors would be critical to strengthening the workforce as well as to raising overall productivity.
• NSSO – Between 2010 and 2012 increase in both rural and urban regular wage – bit encouraging.
• In India over 94% of the working population are in unorganised sector and the remaining employed in formal sector contributing to 60% of nominal GDP of the nation.

• FDI and its role in increasing quality jobs ?(For instance in retail which is highly debated)
• MGNREGA and its role in providing fixed income and its impact?
• Why employment generation need to be in the top priority for government and its impact in Economy?