Ten million workers have lost their jobs already this year as a result of the financial crisis in the Far East and "millions more" will do so by the end of the year, according to the International Labour Organisation (ILO).
The ILO's World Employment Report for 1998 also says a third of the world's workforce of three billion remains either unemployed or underemployed. One striking feature of international employment trends is the rapid growth in female participation in the workforce in all regions. However, much of this continues to be in part-time employment.
This year's report contrasts sharply with last year's edition, which predicted substantial employment growth.
It shows that Ireland's unemployment has been falling faster than that of any other OECD country, while increases in real wages have been about average for this group of developed economies. The report says that the competitiveness of OECD countries has improved significantly because of low commodity prices.
However, it also says that these prices reduce demand in developing countries, as well as the ability of governments and commercial sectors in these regions to improve productivity.
It warns that deflation, which could spread rapidly from the Far East to other parts of the world, would have a particularly harsh impact on the developing world.
Asian economies in transition to a market economy, such as China, Vietnam, Laos, Cambodia and Mongolia, will face huge unemployment problems "because of their vast amount of excess labour in state and collective enterprises".
The report warns that in other Asian countries the "financial crisis has shown the costs of neglecting social concerns. The pace of globalisation has been primarily driven by market forces, and the national, and to some extent international rules, institutions and practices needed to render its consequences socially acceptable have been insufficiently developed.
"Even the high-income East Asian countries are ill-prepared to cope with their own labour displacement in a socially acceptable manner, since they hardly felt the need to build up the necessary agencies and practices."
One lesson that had emerged from the current crisis was the "volatility of especially short-term capital flows; these can act as a strong force triggering a currency crisis, especially in over-indebted economies with fragile banking systems". The report says the slight recovery in the Russian economy will be wiped out by "recent turmoil" in the financial markets.
The crisis in the Far East also threatens the recovery of traditionally depressed regions like South America and, of course, Africa. In Africa, the growth rates of many countries were rising by between 5 and 6 per cent last year because of good harvests, improved export prices and structural reforms.
Traditionally one of the worst regions for unemployment, production growth is still making little impact on employment
The ILO is a UN-sponsored body through which the world's governments, trade unions and employer bodies agree international conventions on employment.
