Rapid assessment of impact of global economic crisis in Sri Lanka:

Global unemployment could increase in 2009 says ILO

Anjalie GARNIER

The findings of the ILO rapid assessment report of the impact of the global economic crisis on employment and industrial relations in Sri Lanka was presented to the media last week by ILO Consultant Ramani Gunatilaka. Following the prolonged increase in unemployment, poverty and inequality and the continuing collapse of enterprises as a result of the global economic crisis, the assessment of the social impact, the crisis is likely to have indifferent sectors and industries critical for a quick response and ensure that systems and institutions are in place to deal with this crises, where required.

Economic crisis has had impact on daily wage earners, like this rubber tapper.

The ILO has, therefore, called upon national and international authorities, employers, workers and organizations of civil society to engage in rapid and flexible policy action to restore growth and mitigate the effects of the crisis particularly for the most vulnerable groups.

"The ILO commissioned a rapid assessment, comprising of detailed information and analysis on the impact of the crisis in many countries around the world, to prompt a stronger and more coherent policy response from national stakeholders and the international community and which particularly seeks to alleviate negative effects on the most vulnerable groups," explained Director ILO Sri Lanka Tine Staermose.

Ramani Gunatilaka in her presentation said, "A key finding of the report is that the global economic crisis is likely to lead to a dramatic increase in unemployment, working poverty and vulnerable employment."

One way in which the economic crisis is affecting the Asian Labour markets is through declining demand for labour - reflected in rising unemployment and under-employment rates, reduced working hours, declining labour force participation, downward pressure on wages and less job security.

The number of workers in vulnerable employment in Asia is likely to rise substantially by up to 60 million in 2009, indicating that the crisis is not only effecting the number of jobs but also quality of employment.

ILO in Asia and the Pacific

The theme for the ILO's 90th anniversary is '90 years working for social justice'. The ILO opened its first Asian Field office in 1946 at Bangalore, India. The office was later moved to Colombo and became the Regional office for Asia and Pacific.

Globally, the report finds that unemployment could increase by as much as 50 million between 2007 and 2009 and that 200 million workers around the world risk falling into extreme poverty. At the start of the crisis more than 60 percent of Asia's workers were classified as being in 'vulnerable employment'.

ILO responsibilities

The first duty is towards the tripartite constituency of the organization - governments, employers and workers to assist them, when requested, in ways adapted to their specific circumstances.

The second responsibility is to draw the conclusions from a pattern of globalization that is coming to a stop in order to build the foundations of a new globalization based on sustainable, fair and environmentally sound economic growth and social development in open economies and open societies. The ILO declaration on social justice for a fair globalization commits us to make social justice and fair globalization key drives of the future.

The third responsibility is what to do about this global economic crisis.

The impact of the global economic crisis on employment and industrial relations in Sri Lanka:

An initial and rapid stock taking of the impact of the global economic downturn on employment in Sri Lanka nearly six months into the crisis.

Focus on employment and industrial relations has received less attention than have the macroeconomic developments which are more easily identified and monitored.