According to the International Labor Organization, world unemployment is likely to mark its highest record in the coming years until 2017, reports CNBC.
The annual employment report predicts that there will be a severe impact in the world unemployment rate in 2013 that will go beyond the 2009 record, which is marked the worst year for unemployment worldwide with a 198 million people without jobs.
As the unemployment rate rises, nearly 5.1 million people are likely to be without jobs which will mark the highest unemployment rate of 202 million by 2013. The report further adds an additional 3 million will increase in 2014.
Mostly young people are affected by the unemployment worldwide, the report said. Reports state, 73.8 million young people were unemployed in 2012 and an addition of nearly half a million is likely to be increased by 2014.
"Many young people now experience long-term unemployment right from the start of their labor market entry," said Guy Ryder, ILO Director-General, during a presentation of the report's findings. "When this occurs early on in a person's career, it can do significant damage to their long-term employment prospects. Governments should step up efforts to support skills and retraining activities in order to address such mismatches which particularly affect young people."
The report also noted that nearly 75 percent of 2012's unemployment occurred in the under developed regions of the world such as East and South Asia and Sub-Saharan Africa.
"The main transmission mechanism of global spillovers has been through international trade, but regions such as Latin America and the Caribbean have also suffered from increased volatility of international capital flows," the report said. "In addition, incoherence between monetary and fiscal policies adopted in different countries and a 'piece-meal' approach to the financial sector and sovereign debt issues, in particular in the euro area, have led to uncertainty on the global outlook."
Due to the failure in recovery of the investment in many countries, this led to insecurity of future conditions resulting to increase cash holdings or pay bonuses rather than increase the number of workers, says the report.
With a speedy recovery in economical growth, the unemployment rate would not vanish completely but will continue to reduce the impact. The report said the unemployment rate will remain consistent at 6 percent increase till 2017. The unemployment rate is likely to rise up to 210.6 million in the next half decade.