* UN agencies blame the weight savings, Reform to the crisis

* Say job does not return to pre-crisis levels til 2016

* An estimated 202 million jobless by 2012, 3.8 pct levels

* Warns of social unrest in Africa, Middle East

By Stephanie Nebehay

GENEVA, 29 April (Reuters)

Fiscal austerity and difficult labor reform has failed to create jobs, leading to a situation “alarming” jobs in the global market that shows no signs of recovery, the International Labour Organization said on Sunday.

In developed countries, especially in Europe, the work is not expected to get back to the level before the crisis of 2008 until the end of 2016–two years later than it had previously estimated–in line with a slowdown in production.

Approximately 196 million people became unemployed worldwide at the end of last year, the forecast would rise up to 202 million in 2012 for a level of 6.1 percent, according to the Agency for the United Nations flagship annual report, “world of work report in 2012″.

Raymond Torres, Director of the ILO Labour Institute for International Studies, “Saving is not yet generating more economic growth,” said a news briefing.

“The reform of the labor market ill-conceived in the short term does not work either. This reform in a crisis situation likely to lead to more job destruction and job creation that very few at least in the short term, “said Torres, lead author of the report.

Job seekers a long-term passion and an average 40 percent of job seekers in their primary (aged 25-49) in the developed countries has been without work for more than a year, the report found.

Youth unemployment rates have soared, increasing the risk of social unrest, especially in parts of Africa and the Middle East.

The labour market as a whole has deteriorated during the past six months, with a very significant slowdown of European countries, Torres said. Unemployment grows in a number of countries, including more than two-thirds of European countries over the past year.

“The narrow Focus of eurozone countries in fiscal savings are deepening the crisis could lead to job and even another recession in Europe,” he said.

“In addition, there is little progress occurred in other parts of the world, for example the United States, where progress in reducing unemployment seems to be slowing down and this seems to be the trend,” he said.

The labor market recovery has also stalled in Japan, the report said. Employment rate has stagnated or “double-dipped” in China, India and Saudi Arabia, while Latin America, marked by increased, Argentina, Brazil and Mexico.

“ILL-CONCEIVED REFORM”

“Clearly points the combination report austerity measures with the labor market reform as the real cause of the misunderstood the deterioration taking place in Europe and little by little to spread to other parts of the world,” said Torres.

In Spain, unemployment shot up to 24 percent in the first quarter, its highest level in almost two decades and one of the figures of unemployment is worst in the developed world, according to figures issued Friday. The standard and poor’s downgraded government debt by two notches.

The number of jobless in France rose to the eleventh month in March to reach the highest level since September 1999, according to the Labor Department data released on Thursday.

The European Union, which produce about a fifth of global output, has been struggling to strike a balance between austerity and growth as it seeks to overcome a decade of runaway spending while grappling with recession.

Economics ahead just six have seen growing levels of jobs since 2007: Austria, Germany, Israel, Luxembourg, Malta and Poland.

The report recommends the State would do better to improve the quality of jobs and strengthening institutions, rather than the labour market deregulating.

It also suggests better use of European structural funds as well as the increase in the minimum wage in the countries of Europe “as a way to put a floor on the recession in Europe.”

“ILO understands that fiscal deficit did not long remain high. Very important to have a strategy for the medium term fiscal consolidation, “said Torres.

“But the question of speed and content of fiscal consolidation. The speed must be realistic, “he said. (Reporting by Stephanie Nebehay; Editing by Sophie Walker)

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