The International Labour Organization (ILO) has forecast that, in the worst-case scenario, 51 million jobs could be lost globally by the end of this year .
Given this is a significant hike from the earlier estimate, global leaders need to get together and take concerted action. Some suggestions are:
- Governments should divert funds towards projects that can help generate employment. They must also invest heavily in public infrastructure — railways, airlines, dams, power generation projects, etc.
- The salary/wage component varies from 4-10 per cent of sales for most companies, so sacking workers is really no solution. Corporate leaders need to act in a mature fashion and should use the talent/skill of employees to diversify, expand, enter new markets and evolve new products. In January after its expected profits fell, Panasonic announced the closure of three of its plants, resulting in a loss of more than 500 jobs. But at the same time ASDA — a British supermarket chain which retails food, clothing, toys and general merchandise — plans to add 7,000 people this very year!
- Commercialisation of agriculture, especially in developing countries, combined with better storage and transportation, can improve output, reduce waste and feed people at lower prices. It also creates productive jobs.
- Governments should encourage new entrepreneurs and provide incentives like low interest rates, tax holidays, subsidised utilities. This will create more jobs and renew confidence.
- When global leaders like presidents and prime ministers appear hesitant, they create more panic. It is almost becoming fashionable to be a pessimist!
Rajendra K Aneja, Dubai
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