:00:00. > :00:00.Those are the latest headlines from BBC World News. Now for the latest
:00:00. > :00:15.financial news with Sally and World Business Report.
:00:16. > :00:22.Where are the jobs? The International Labour Organisation
:00:23. > :00:26.sees rising unemployment in the next few years, despite the creation of
:00:27. > :00:29.many new jobs. Serbia has officially started
:00:30. > :00:33.accession talks with the European Union. If all goes well, it may
:00:34. > :00:45.become a member sometime around 2020.
:00:46. > :00:50.Welcome to World Business Report. I'm Sally Bundock. In a minute,
:00:51. > :00:51.we'll also hear how it's becoming easier for foreign auto companies to
:00:52. > :00:59.build and sell cars in Malaysia. The world economy may have turned
:01:00. > :01:02.the corner but the job market is yet to recover. That's according to the
:01:03. > :01:05.latest report by the International Labour Organisation. The study shows
:01:06. > :01:10.not enough new jobs are being created to keep up with a growing
:01:11. > :01:16.labour force. Almost 202 million people were jobless around the world
:01:17. > :01:19.last year. That's five million more than in 2012. And the ILO predicts
:01:20. > :01:21.global unemployment will continue to rise, with about 215 million people
:01:22. > :01:31.seeking jobs by 2018. Guy Ryder is the director-general of
:01:32. > :01:42.the International Labour Organisation. He joins me now from
:01:43. > :01:47.Geneva. You are calling this a jobless recovery. Tell us more about
:01:48. > :01:53.your concerns. The problem we have is that despite the recovery, in
:01:54. > :01:59.global economic growth, we're not going quickly enough into the new
:02:00. > :02:04.entrance of the markets around the world.
:02:05. > :02:20.We have going dole queues. This trend will continue unless the trend
:02:21. > :02:26.picked up significantly. At the time, policymakers were saying, the
:02:27. > :02:31.crisis will be over. When we get people back to work, that is.
:02:32. > :02:35.Unfortunately, people are not going back to work. Things are still going
:02:36. > :02:41.in the wrong direction. Policymakers have to focus on this. From the
:02:42. > :02:46.perspective of business leaders and the developed world, they say there
:02:47. > :02:51.are more confident. Many are ready to invest and create new jobs. You
:02:52. > :02:58.are saying that governments need to be more. We need investment to pick
:02:59. > :03:02.up. One of the key policy areas we identified in our report is
:03:03. > :03:08.uncertainty. Higher uncertainty, policy uncertainty. Policymakers
:03:09. > :03:12.have they have clear indications of where they are going in the future.
:03:13. > :03:18.Then we will see jobcreating investment picked up. Corporate
:03:19. > :03:22.profits are doing well around the world. Two of that is still going
:03:23. > :03:26.into financial markets and assets, rather than real economy
:03:27. > :03:32.investment, job creation investments. That needs to be
:03:33. > :03:37.redirected. We are looking at a global view. If we have to narrow it
:03:38. > :03:49.down, where do you feel which country is doing... Not doing
:03:50. > :03:57.enough? Nearly half of the additional unemployment in 2013, 40
:03:58. > :04:02.5% has been observed in Asia, South Asia and East Asia. That might not
:04:03. > :04:05.be where you would expect. That might be related to demographic
:04:06. > :04:12.trends. The highest level of unemployment, and this is not new,
:04:13. > :04:17.is to be found in North Africa and the Middle East. Some of the has to
:04:18. > :04:21.do with political turbulence and dislocation. That part of the world
:04:22. > :04:29.has had a long-term structural problem in labour markets. We have
:04:30. > :04:36.to look at the developed world. We have to look at the euro area. An
:04:37. > :04:39.employment figures remain stubbornly high despite feeling the corner has
:04:40. > :04:46.been turned. We have to look across the world and point the finger at
:04:47. > :04:50.the situation of young people. If you translate these millions in the
:04:51. > :04:58.percentage terms, for the general population, unemployment is around
:04:59. > :05:02.6%. For young people, it is 13% and heading in the wrong way. We have to
:05:03. > :05:13.give priority that. Thank you.
:05:14. > :05:16.Serbia, once considered a pariah state, is eagerly awaiting the start
:05:17. > :05:19.of accession talks with the European Union, hoping the move will provide
:05:20. > :05:21.a boost to its struggling economy. Socialist Prime Minister Ivica Dacic
:05:22. > :05:23.will head Serbia's delegation in Brussels today at the first
:05:24. > :05:26.inter-governmental conference, a formal start of the talks on EU
:05:27. > :05:30.membership. As Guy Delaunay reports from Belgrade, Serbia's industry has
:05:31. > :05:46.a lot of catching up to do before it can join the European mainstream.
:05:47. > :05:52.It had its own railway station. It gave its name to the surrounding
:05:53. > :05:57.area and local football team. The sprawling industrial complex outside
:05:58. > :06:03.a great lies in ruins. This is to be a combined Harvester fact there
:06:04. > :06:07.Thousands of people once worked here. Like most of Serbia's
:06:08. > :06:16.industry, it didn't survive the breakup of Yugoslavia. -- harvester
:06:17. > :06:22.factory. It is trying to attract investment. These are desperate
:06:23. > :06:28.times. Around one in three people cannot find a job. Even those who
:06:29. > :06:34.can earn an average of 400 euros per month. The country has to break with
:06:35. > :06:41.the past and embrace a European future. We are very keen. We are
:06:42. > :06:46.very frank and open to cooperate with the international community to
:06:47. > :06:54.get more knowledge from Western societies, to attract more
:06:55. > :07:00.investors. Is car factory shows renewal is possible. It is to be a
:07:01. > :07:07.disaster of a factory. Now it is turning out the theatre models. The
:07:08. > :07:18.Italian company to wake for EU talks to make the move. -- wait. It might
:07:19. > :07:23.make Serbia at an attractive option for investors. There are mixed
:07:24. > :07:29.feelings about the prospect of EU membership. We have a big market in
:07:30. > :07:34.European unions. We have the opportunities. Maybe we have a
:07:35. > :07:39.problem with retail standards because a lot of companies work in
:07:40. > :07:51.Serbia do not have licences and standards. We are closer to Russia
:07:52. > :07:59.and NT the EU. We appreciate some of the things that are not Willie
:08:00. > :08:08.valuable today. A lot of things will change you. Whatever happens, it
:08:09. > :08:09.will take time. Of negotiations and reform will follow before Serbia
:08:10. > :08:19.finally becomes an EU member. The Malaysian government has
:08:20. > :08:22.unveiled a new policy which could create big changes for foreign car
:08:23. > :08:32.manufacturers. Babita Sharma has the details from Singapore. An
:08:33. > :08:41.interesting development this morning. The government says it will
:08:42. > :08:47.these incentives in relation to smaller vehicles. Foreign carmakers
:08:48. > :08:52.can only make vehicles with an engine size of 1.8 litres. That was
:08:53. > :08:59.to protect the country's National car makers. This policy shift
:09:00. > :09:04.emphasises the opportunities for international brands looking for new
:09:05. > :09:11.avenues of growth. To give you an idea, there are 650,000 cars sold in
:09:12. > :09:17.Malaysia last year. That is a 5% growth compared to sales in 2012.
:09:18. > :09:22.The government aim is to increase total car production to around 2.5
:09:23. > :09:31.million vehicles by 2020. Previously, Malaysia was South East
:09:32. > :09:36.Asia's carmaking hub, before Thailand took over. This change
:09:37. > :09:40.could be a benefit for Honda. They already have a hybrid car
:09:41. > :10:02.manufacturing plant in Malaysia. Time will tell how this works out.
:10:03. > :10:06.A lot of cash has been injected in the Chinese economy in the run-up to
:10:07. > :10:25.the lunar New Year. Energy distribution bosses will face
:10:26. > :10:28.questions today from MPs about the power cuts which followed the storms
:10:29. > :10:29.over the Christmas period. The problems hit