Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
News18 » Business
2-min read

Financial crisis to cost 20 million jobs, says UN agency

Construction, real estate and financial services are most likely to be hit.

News18test sharma |

Updated:October 21, 2008, 11:09 AM IST
facebookTwitter Pocket whatsapp
Financial crisis to cost 20 million jobs, says UN agency
Construction, real estate and financial services are most likely to be hit.

Geneva: Twenty million jobs will disappear by the end of next year as a result of the impact of the financial crisis on the global economy, a United Nations agency said on Monday.

Construction, real estate, financial services, and the auto sector are most likely to be hit, according to the International Labour Organisation's (ILO) estimate, which is based on International Monetary Fund projections for the world economy.

The toll on jobs could be even higher if IMF economic projections are cut, said ILO Director-General Juan Somavia.

"We have to talk about the financial crisis in terms of what happens to people and what happens to jobs and enterprises," he told reporters.

Somavia said the ILO, which brings together governments, employers and workers, wanted to steer discussions about the resolving the crisis toward job creation and other steps to promote the "real economy".

"It would be tragic to respond to a sub-prime crisis with sub-prime policies," he said.

The ILO does not yet have a regional breakdown of projected job losses, which Somavia said would take global unemployment to 210 million in late 2009 from 190 million last year, the first time it has topped 200 million. But countries with large domestic markets that do not depend heavily on exports would be able to weather the crisis better, he said, citing as an example China, where exports make up only 11 per cent of the economy.

It was alarming that global unemployment had stayed at the same levels despite the strong economic growth seen between 2002 and 2007, said Somavia, who files to New York this week for talks with the heads of all UN agencies, chaired by UN Secretary-General Ban Ki-moon.

He said resources should be pumped into the economy to stave off or mitigate recession, concentrating on employment-intensive sectors including small enterprises.

The financial sector should also be steered back to its fundamental function of lending to entrepreneurs, according to the Chilean lawyer and diplomat. Somavia said the financial sector's share in the profits of US companies had risen to 41 per cent last year from 5 per cent in 1980.

As a result, banks preferred to invest in financial transactions rather than lending to other productive sectors. "So this system began to siphon off resources from the real economy process," he said.

And listed non-financial companies came under pressure to match the returns of the financial sector, forcing them to cut costs – often by freezing salaries or laying off staff – rather than making long-term investments.

"From one point of this view this is called productivity increases. From a more profound point of view it means a worker becomes a commodity," he said.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
ICICI Bank 496.05 2.12
SBI 305.00 -0.59
Yes Bank 68.30 0.15
Indiabulls Hsg 212.35 -2.70
Reliance 1,464.00 -0.56
Company Price Change %Gain
Narayana Hruda 297.45 -1.38
Cipla 449.05 0.18
Yes Bank 68.35 0.15
Cholamandalam 306.00 2.93
Indiabulls Hsg 212.15 -2.82
Top Gainers
Company Price Change %Gain
Infosys 708.05 2.42
ICICI Bank 496.05 2.12
Bajaj Finance 4,205.10 1.46
Maruti Suzuki 7,247.75 1.30
BPCL 515.00 0.96
Company Price Change %Gain
Infosys 708.00 2.42
ICICI Bank 496.10 2.12
Bajaj Finance 4,206.10 1.51
Maruti Suzuki 7,246.80 1.27
Bajaj Auto 3,232.25 0.86
Top Losers
Company Price Change %Gain
Bharti Infratel 204.25 -6.39
Vedanta 143.00 -3.64
IndusInd Bank 1,364.55 -3.51
GAIL 120.00 -3.11
Zee Entertain 281.30 -3.18
Company Price Change %Gain
Vedanta 143.00 -3.54
IndusInd Bank 1,365.65 -3.41
Tata Motors 166.65 -2.32
Coal India 202.80 -2.12
Bharti Airtel 361.50 -1.90

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results