Tuesday, March 13, 2012

G-8 industrial nations pledge to help jobless

Labor ministers of the Group of Eight industrialized countries pledged Tuesday to tackle the "human dimension" of the global economic crisis by easing unemployment and strengthening welfare systems.

The conclusions of the three-day gathering in Rome are being forwarded to a G-20 summit in London on Thursday to push world leaders to focus on the rising numbers of jobless as they try to fix the world financial system.

"Governments must first of all care for those who lose their jobs," Italian Premier Silvio Berlusconi said at a news conference. "We intend to get out of this crisis without leaving anyone behind."

The G-8 labor ministers met with international organizations and representatives of six emerging countries to discuss ways to create jobs, improve training of workers and aid the unemployed.

Italian Labor Minister Maurizio Sacconi said the summit wanted to send out the message that "while we are dealing with banks and bankers, the ultimate goal of our policies is to help people."

Sacconi said it was essential for countries to keep laid off workers in the job market so that it's easier to rehire them once the situation improves. Italy has been trying to limit job losses in the auto and other key industrial sectors through temporary layoff schemes under which workers receive benefits from a government fund.

The Organization for Economic Cooperation and Development has warned the unemployment rate among member countries could approach 10 percent in 2010, compared with 5.6 percent in 2007.

According to a summary of the Rome discussions circulated by the Labor Ministry, welfare systems were also considered a key to global economic recovery.

By taking care of basic needs like health care, pensions and education, welfare systems can contribute to creating a "virtuous circle" of confidence that will encourage consumers to resume spending and restart the economy, the document said.

The members of the G-8 are Britain, Canada, France, Germany, Italy, Japan, Russia and the United States. Representatives of Brazil, China, Egypt, India, Mexico and South Africa also joined the Rome summit.

The participation of developing countries highlighted how the crisis is also cutting the remittances immigrants send back home to their relatives, who often depend on the money to survive. Mexico Secretary for Social Development Ernesto Cordero said the flow of money from Mexican emigrants had dropped 8-10 percent.

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