The International Labor Organization estimates that as much as 231 million will be unemployed this year. The director general of the ILO, Juan Somavia of Chile, says that the financial crisis has become a ‘global job crisis.’ He reports, “The global unemployment could affect 231 million people in 2009, an increase of 52 million as compared to 2007.”

The head of the ILO regrets that the current economic climate “has threatened, in just a few months, much of the progress that the world has done over the past fifteen years in reducing poverty.”

In his view, the crisis was caused by an “unbalanced and unfair” model that has been implemented over the recent years. This model has, in his opinion, overvalued the role of the market, undervalued the role of government, and undermined the dignity of work and respect for the environment.”

Somavía explained that the situation is particularly difficult for developing countries, such as some of those in Latin America where rising unemployment has added an increase in poverty, with workers earning less than two dollars a day.

To exit the current situation, Somavia emphasized the importance of promoting the flow of capital to revitalize the economy and urged banks to lend money. “Banks need to revert to its traditional role of lending money to businesses and individuals, the real drivers of the economy. These invest, trade, and consume,” he said.

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Via International Labour Organization