The report produced by the World Bank, International Labour Organisation and OECD added that there were high levels of under-employment and informality which was undermining both current consumption and potential output and productivity growth in the long-term.
The report urges G20 countries to create more and better jobs as a foundation for sustained growth and the wellbeing of their societies.
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Titled, G20 labour markets: outlook, key challenges and policy responses, the report also added that economic growth was expected to remain below trend with significant downside risks over the foreseeable future.
“Persistent slow growth will continue to dampen employment prospects, while the employment intensity of growth has also been weakened in many countries,” read the report.
“Despite some small improvement recently, the jobs gap is projected to remain substantial in several G20 economies until at least 2018.”
According to the report, the last 12 months have seen the majority of the G20 countries witnessing a modest reduction in the unemployment rate, with some exceptions.
“These positive developments were largely due to welcome net job creation, especially in the United States, but in some cases resulted in part from declines in the labour force participation rate,” read part of the report.
The World Bank also noted that weak global economic growth observed since the financial crisis has been associated with even weaker employment growth in most G20 countries, so-called jobless growth, although with wide variations.
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“Despite some small improvement recently in several countries, the G20 jobs gap is projected to remain substantial until at least 2018, particularly in advanced G20 countries.”
It is also reported that job quality and real wages in a number of G20 countries was also in the decline.
“Real wages have stagnated across many advanced G20 and even fallen in some. Wage growth has significantly lagged behind labour productivity growth in most G20 countries.”
The report added that wage and income inequality has continued to widen within many G20 countries, although progress has been made in a few emerging economies.