Jobs growth set to beat global average

The Republic is again expected to surpass global job creation in 2005, with forecasts from the International Labour Office (ILO) pointing to sluggish jobs growth across much of the world.

The ILO yesterday said that weak global job creation could drag the economic recovery down. The problem, the Geneva-based organisation said, lies in firms taking on workers at a pace that restricts economic growth.

Last year, global economic growth of 5 per cent brought the global rate of unemployment down to 6.1 per cent from 6.3 per cent in 2003, only the second time since 1994 that joblessness has declined, the ILO said.

"The growth of global employment of 47.7 million, an increase of only 1.7 per cent in the total number of jobs worldwide, remained disappointing and employment as a share of the working-age population stayed virtually unchanged at 61.8 per cent in 2004," the ILO said.

Employment in the Republic grew by about 2.4 per cent last year. Private-sector economists are forecasting a similar level of expansion this year, with the Department of Finance pencilling in growth of 1.9 per cent in last December's Budget.

Unemployment last year stood just shy of 4.5 per cent and the jobless level is not expected to post substantial increases this year.

ILO's Ms Marva Corley said the global economy was poorly positioned to transform the business boom into a jobs boom. - (Additional reporting, Reuters)