(CNBC) — Fiscal austerity and tough labor reforms have failed to create jobs, leading to an "alarming" situation in the global employment market that shows no sign of recovering, the International Labour Organization said on Sunday.
In advanced countries, especially in Europe, employment is not expected to return to pre-crisis levels of 2008 until the end of 2016 — two years later than it previously predicted — in line with a slowdown in production.
An estimated 196 million people were unemployed worldwide at the end of last year, forecast to rise to 202 million in 2012 for a rate of 6.1 percent, according to the United Nations agency's annual flagship report, "World of Work Report 2012".
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"Austerity has not produced more economic growth," Raymond Torres, director of the ILO Institute for International Labour Studies, told a news briefing.