Three-quarters of workers are precarious in the world

THE ECO SCAN – The latest report from the International Labor Organization (ILO) also reveals that the planet has 201 million unemployed.

• 75% of workers are precarious. Three in four workers in the world do not enjoy a stable employment relationship, says the International Labor Organization (ILO) in its report “Employment and social issues in the world 2015” published on Tuesday. In other words, only a quarter of workers are employees with a permanent contract, with a full-time job. The remaining three quarters are on fixed-term contracts, work part-time, are their own boss, or work illegally.

60% of workers do not have a contract. The employment contract concerns only a minority of workers in the world. Those who do not work for the informal economy, as part of undeclared family jobs but also are self-employed.

201 million unemployed in the world. Since 2009, the unemployment rate has fallen slightly. It stands at 5.7% for men and 6.3% for women. However, as the general population increases, the planet has 30 million more unemployed than before the financial crisis of 2008, says the ILO report. Each year, 40 million people join the ranks of the global labor market.

20% of the workforce at the heart of globalization. The ILO establishes that one in five workers is employed by a “global supply chain”. In other words, it participates in the manufacture of a good or a service distributed in several countries. This direct contribution to globalization accounted for 296 million workers twenty years ago, and 453 million today. The ILO emphasizes that these employees are more productive than others, but not better paid. In other words, in globalized manufacturing chains, the share of value added devoted to wages is decreasing.

Retirement for 16% of self-employed. In rich countries, nearly 100% of workers benefit from a pension scheme, whether the contribution is partly paid by their employer or whether it is individual. Globally, only 52% of employees are affiliated with a pension plan. But among the self-employed, this proportion drops to 16%.

In general, the Geneva-based organization notes a growing precariousness of employment. It is increasingly difficult “to establish the classic employment model for the majority of workers”. This underlying trend is partly linked to the rise of new technologies. The ILO resigns itself to this but calls on the public authorities and the social partners to broaden the forms of social protection. A titanic task.