Second, policy makers need to focus on reducing the vulnerability of developing countries and the poorest members of society to external shocks. Active labour market policies, including social safety nets, are needed to reduce economic insecurity in a globalized world. In addition, development strategies should include diversification of the output base to spread and dilute risks of vulnerability, a cut in industrial country tariff barriers to manufactured goods, reducing exposure to swings in commodity exports, and reduced protection of rich countries' agricultural sectors. Also, needed are stronger transport, energy and communications infrastructures.

Third, countries should adopt "pro-poor" policies to help women and men secure productive and decent work in conditions of freedom, security and human dignity. This involves supporting the growth of small and medium-sized enterprises and their integration into the formal economy as well as investment in education and health care systems, which improve the ability of the labour force to work productively. In addition, ending restrictions on the right to organize, tackling discrimination and child and forced labour are essential steps toward the economic, social and political empowerment of the poor.

"Only through pro-jobs and pro-poor policies can we address this growing employment crisis and place decent work at the heart of economic and social policies," Mr. Somavia says. "Faster economic growth is necessary, but it is not enough. Failure of policy makers to act now could have grave consequences for us all."