A new business model is needed for working people and families, as the global economic system isn’t working for six billion people, according to labour leaders at the World Economic Forum in Davos, Switzerland. 

According to Sharan Burrow, general secretary of the International Trade Union Confederation (ITUC), working people and families need a new business model to stop the disintegration of democracies and economies. “The world needs investment and jobs,” she said.

Mass unemployment, mistrust in institutions, rising inequality and extremism are global risks for working people, employers and leaders. An ITUC global poll involving 14 countries revealed three observations, that only one out of two people believe the next generation will find a decent job; 78% of people believe the economic system favours the wealthy rather than being fair to most people; and 62% of the world’s population want corporate power to be tamed.

Burrow said the very nature of corporate incentives to invest in any equal distribution is being undermined by their own business model.

“It’s a two way street: business needs workers, and workers need fair-minded employers. At the moment, business is letting down its side of the deal. Today’s business model is bad for people, bad for the economy and bad for stability and democracy,” she added.

John Evans, chief economist at the ITUC, said falling demand and deflation in Europe is going to put more jobs at risk. However, 30 million jobs could be created in G20 countries with coordinated increases and investments in infrastructure.

“Economic modelling shows that by increasing public investment and raising the share of wages in GDP by between 1% and 5%, economic growth in G20 countries could rise by up to 5.84%.”

He added that “a central aspect of ‘inclusive growth’ must be reducing income inequality and reversing the decline in the share of wages in output and income.”