Unemployment could hit 22 million in eurozone, say UN

The International Labor Organisation warned Wednesday that unemployment will rise to almost 22 million in the next four years across the 17 countries sharing the euro, unless more is done to help small firms and youth.


The International Labor Organization said in a new report that a focus on job creation could avert the loss of another 4.5 million jobs on top of the current 17.4 million unemployed. But the Geneva-based organization concluded it would require a quick, major policy shift “out of the austerity trap” by all the 17 countries that use the joint euro currency.

The sustainability of the European monetary union has been called into question by high government debt, high borrowing costs and tough negotiations over bailouts and spending cuts.

“The report shows that by embracing a eurozone growth strategy with jobs at its core, the recovery is still possible” without any breakup in the currency union, said ILO Director-General Juan Somavia. “But the window of opportunity is closing.”