The financial and economic crisis : a decent work response.

This report finds that the crisis is spreading throughout the real economy by means of three mutually reinforcing transmission channels, namely: the limited availability of credit for working capital, trade finance and viable investments in the real economy (the credit crunch); cautious spending decisions, leading to lower output, employment and prices, in turn affecting confidence among consumers and investors (the vicious cycle of depression); and international trade and investment linkages and remittance flows (the globalization channel). The consequences of the crisis on labour markets have been visible since 2008, especially in the United States where the crisis originated. At the global level, after four years of consecutive declines, the number of unemployed increased in 2008 by 14 million. As the crisis continues to spread and job losses mount, worldwide unemployment could increase by at least 38 million by the end of this year.