A report by the United Nations on trade and development blamed austerity measures for undermining job security for millions of workers around the world and said the world economy “is picking up but not taking off”. 

Secretary-general of the United Nations Conference on Trade and Development (UNCTAD) Mukhisa Kituyi said: “A combination of too much debt and too little demand at the global level has hampered sustained expansion of the world economy”. 

The global economy is expected to grow 2.6%, slightly higher than last year but still below the pre-financial crisis average of 3.2%, according to the annual report by UNCTAD, Beyond Austerity – Towards a Global New Deal which was published on 14 September.

It found austerity to be a common trend for fiscal positions of developed countries.  Thirteen of 14 leading advanced economies had adopted austerity measures between 2011 and 2015 to reduce public debt, the report noted. 

The lack of investment and state support for skills training, and the increased use of robots and artificial intelligence was also said to be a threat to jobs. 

The austerity measures were reported to be particularly bad for women, especially in their access to jobs, and the UNCTAD urged governments to maintain investment in affordable childcare facilities and care for the elderly to give women access to decent employment.

The report said: “Given the employment challenges associated with structural and technological change, and women’s primary responsibility for care work, UNCTAD recommends transforming unpaid and paid care activities into decent work”.

The report set out policy routes for a more inclusive economy and called for a “makeover” of the global economy, including public works programmes to improve financial support to create jobs and improve infrastructure.

“In today’s integrated global economy, governments will need to act together for any one country to achieve success,” the report said. It urged countries to follow the Sustainable Development Goals and work towards a “global new deal”.

Earlier this year, rating agency Fitch said a shift away from strict austerity could help power strong growth across major economies.

The report also touched on the issue of tackling tax exemptions and loopholes, which it said would “greatly add to revenue and fairness” and boost government revenue.