The financial crisis could lead to a 20 million increase in the number of unemployed worldwide by the end of 2009, International Labour Organisation chief Juan Somavia warned today.
Estimates from the ILO indicate that the 'number of unemployed could rise from 190 million in 2007 to 210 million in late 2009,' said Somavia.
The population of working poor living on less than $1 a day could rise by 40 million, and those on $2 a day by over 100 million, added the ILO.
But Somavia said these projections 'could prove to be underestimates if the effects of the current economic contraction and looming recession are not quickly confronted'.
Unemployment rates have been rising throughout the world.
Thousands of jobs have already been slashed on Wall Street and other financial centres as banks collapse or are forced to merge due to the credit crunch.
But the ILO said that the axe was likely to reach ordinary working people, with sectors including construction, the automotive industry, tourism, services and real estate bearing the brunt of the financial storm.
'This is not simply a crisis on Wall Street, this is a crisis on all streets,' Somavia said. 'We need an economic rescue plan for working families and the real economy, with rules and policies that deliver decent jobs.'
