A new report from the ILO’s International Institute for Labour studies entitled Better Jobs For A Better Economy edited by Raymon Torres and researched and written by a team of economists and labour market analysts including some 13 individuals  has sharply criticized European austerity measures as having been damaging to employment. It is worth quoting a small passage directly from the  editorial introduction to the Report. (quoted courtesy of the authors and publisher)

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In addition, as part of the policy shift, the majority of advanced economies

have relaxed employment regulations and weakened labour market institutions

(Chapter 2), and more deregulation measures have been announced. These steps

are being taken in the hope that financial markets will react positively, thereby

boosting confidence, growth and job creation.

However, these expectations have not been met. In countries that have

pursued austerity and deregulation to the greatest extent, principally those in

Southern Europe, economic and employment growth have continued to deterio-

rate. The measures also failed to stabilize fiscal positions in many instances. The

fundamental reason for these failures is that these policies – implemented in a con-

text of limited demand prospects and with the added complication of a banking

system in the throes of its “deleveraging” process – are unable to stimulate pri-

vate investment. The austerity trap has sprung. Austerity has, in fact, resulted in

weaker economic growth, increased volatility and a worsening of banks’ balance

sheets leading to a further contraction of credit, lower investment and, conse-

quently, more job losses. Ironically, this has adversely affected government budgets,

thus increasing the demands for further austerity. It is a fact that there has been

little improvement in fiscal deficits in countries actively pursuing austerity policies

(Chapter 3).