12 Jul 2012

ILO warns millions more euro zone jobs could be lost

2:24 pm on 12 July 2012

The International Labour Organisation is warning that 4.5 million more jobs could be lost in the euro zone in the next four years due to austerity measures across Europe.

That would take unemployment in the 17-nation bloc to 22 million, the BBC reports.

The ILO said a concerted policy shift away from austerity towards job creation was needed.

The organisation said it is not only the euro zone that is in trouble, but the entire global economy is at risk of contagion.

The report said that all 17 countries in the eurozone would suffer, both those currently under stress and their healthier counterparts.

"Unless targeted measures are taken to increase real economy investments, the economic crisis will deepen and the employment recovery will never take off," ILO director-general Juan Somavia said.

The report added that the consequences of a longer period of austerity would be particularly severe for young people.