A new ITUC study, conducted by researchers at the University of Greenwich, shows that stepping up public investments can have significant positive impacts on employment and overall economic growth. The study simulated the impact that public spending increases in the care economy, the green economy, and infrastructure could have across eight countries.
The report shows that a repeated annual increase in public spending by 1% of GDP within these three sectors would yield major economic returns that exceed the initial level of investments made.
The findings reveal that:
- Investing an extra 1% of GDP in the care economy over five years would yield an average GDP increase of more than 11%, as well as a 6.3% increase in total employment levels.
- An extra 1% of GDP investment in the green economy over five years would yield an average GDP increase of 10%, as well as a 7.5% increase in total employment levels.
- An extra 1% of GDP on infrastructure investment over five years would increase both employment and GDP levels by 12% on average.
Owen Tudor, ITUC Deputy General Secretary, stressed: “The lingering employment effects of Covid-19, as well as a rapidly changing world of work, have underscored the urgency of addressing employment deficits and inequalities. Governments must step up their investments to support the creation of quality jobs – especially in strategic sectors that are good for both people and the planet including care, infrastructure, and the green economy.”
At the global level, trade unions are calling for the creation of 575 million jobs and the formalization of at least one billion informal jobs by 2030, to enable the delivery of the United Nations’ 2030 Agenda commitment to full employment and decent work under Sustainable Development Goal 8.