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ITUC Youth highlights adverse impacts of IMF, World Bank austerity policies

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THE International Trade Union Confederation (ITUC) Youth Committee has called for urgent action to reinforce democratic principles in workplaces, societies and global institutions amid escalating economic and social challenges.

In a recent statement, the committee highlighted the adverse impacts of decades of austerity and macroeconomic policies imposed by entities such as the International Monetary Fund (IMF) and the World Bank, which have left public services and social protection systems in disarray.

The committee underscored that high debt levels have siphoned resources away from crucial investments in job creation, particularly in the care sector and climate-friendly industries.

It said: “This has exacerbated the struggles faced by young people, who are disproportionately affected by unemployment and lack of access to adequate training and skills development. Many young workers find themselves in precarious, low-paying jobs in the informal economy, devoid of social protection, or face significant barriers to employment in sectors plagued by labor shortages due to poor wages and conditions.

“Covid-19 pandemic further worsened these conditions, with young people, women and marginalised groups experiencing heightened discrimination and job insecurity.

According to the International Labour Organisation (ILO), many young individuals who exited the labour market during the pandemic are neither in education nor training, creating long-term challenges for their future employment prospects.

“In the face of ongoing crises, ranging from conflicts and climate emergencies to rising food and energy costs, the committee noted a growing disillusionment among young people towards democratic systems, which appear increasingly ineffective in addressing these multifaceted issues.”

The ITUC’s New Social Contract, which advocates guaranteed jobs, rights, wages, social protection, equality and inclusion, is presented as a vital framework for young workers to push for democratic reforms.

The Youth Committee calls on all to join a union on August 12 to amplify the voices of young workers and bolster democracy across all spheres.

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