The Global Financial Crisis and the Right to a Decent Job

Abstract

The United Nations, and before it the International Labour Organization, have consistently emphasised the right to employment with dignity and security. With the onset of the global crisis in the financial sector, this right is more important than ever. But paying lip service to the importance of the right is not enough. This chapter sets out the policies necessary to restore full employment as quickly as possible. It argues that it is possible to do this while still providing all employed with a ’decent’ job, and that the counter argument depends more on ideology than empirical evidence. The article concludes that the country whose economy has the most influence on the rest of the world, the United States, and our own country are both currently implementing appropriate policies. In a longer-run context, the rhetoric of the Commonwealth government is not so helpful. It argues that, unlike other sectors in the economy, governments should not normally borrow to invest in assets that will produce a flow of services for years; moreover, if they do so they should repay the loan as soon as circumstances permit. This focus is likely to cut short the fall in unemployment before Australia reaches full employment.