Employment and labour
market adjustments in G20
countries during 2007-09
and outlook for 2010:
A Statistical overview
INTERNATIONAL LABOUR OFFICE
GENEVA, APRIL 2010
An ILO report, with substantive contributions from OECD,
to the Meeting of G20 Labour and Employment Ministers,
20-21 April 2010, Washington, DC
G20
Introduction
The world economy is recovering from a severe fi-
nancial and economic crisis. The crisis arose in August
2007 in the United States and spilled over to other sec-
tors and economies in 2008. The effects of the crisis
intensified in September-October of 2008. Stock mar-
ket prices and commodity prices plummeted around
the world and major financial institutions in the United
States and Europe underwent emergency rescues. De-
veloping and emerging economies were affected prima-
rily through declining international trade, commodity
prices and capital inflows. The crisis reached the real
economy worldwide, affecting firms and workers, as
well as households through reduced consumption and
investment and lowered expectations.
Losses in employment, rising unemployment and
declines in incomes were observed in virtually all G20
countries as of early 2009.
Governments intervened to support economic activ-
ity through massive liquidity injections into the finan-
cial markets and aggressive monetary policy, primarily
through steep cuts in interest rates. Extraordinary fiscal
stimulus measures have been taken, including discre-
tionary tax cuts and higher government spending. A
number of key employment policy measures have also
been taken, including short-time working arrangements,
training programmes, and extension of unemployment
insurance benefits. The G20 played an active role in co-
ordinating global and national responses. In particular
the G20 decided in London in April 2009 to triple the
resources of the IMF. These measures have been gener-
ally successful in avoiding a more severe recession and
preventing an even greater number of business bank-
ruptcies and job losses.
T