New Delhi: India should not withdraw stimulus measures without ensuring that economic growth has revived, according to an International Labour Organization (ILO) study.
The study, ‘World of Work Report 2009: The Global Jobs Crisis and Beyond’, said India’s slowdown has been modest and that new jobs have been created in 2009, according to an ILO release. Jobs have risen by 500,000 in the third quarter, but more workers are likely to move into informal employment, said the study made public by the ILO’s Geneva headquarters on Monday.
Graphics: Sandeep Bhatnagar / Mint
Though India’s remittance flow at $52 billion in 2008-2009 was stable, the effect of global economic problems could be felt after a lag, the report said. More workers are likely to return home from overseas as job losses kick in, it said. Government programmes such as the National Rural Employment Guarantee scheme have played a role in helping the country avoid the worst effects of the crisis but basic social protections in India remain poorer than in other emerging economies such as Brazil, China and South Africa.
The release said the early withdrawal of stimulus measures by governments could threaten 40 million jobs worldwide. An estimated five million workers are at risk of losing their jobs if governments withdraw their support in the 51 countries studied by ILO.