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The G20 summit needs to look at ways to resolve problems in the labour market, not just the banking system.

World leaders at the conference should examine how to boost job creation in both the short and long term when they meet later this week, according to the Chartered Institute of Personnel and Development (CIPD).

The organisation's Message From Management statement calls for a series of policy agreements that will increase employment opportunities and improve productivity in the workplace.

Governments should attempt to maintain flexible employment markets and encourage the free movement of labour across international borders, the group recommends, while increased public investment in vocational education and training should be carried out.

The organisation also calls for further support for young people, to ensure they are trained in skills which are useful in the workplace.

Dr John Philpott, public policy director at the CIPD, explains: 'For the sake of the long-term benefit of the global skills base, this should be as much of a priority as freeing the credit markets. Let's avoid the global credit crunch spawning a global skills crunch.'

Research from consultancy The Work Foundation recently claimed that businesses are keen to retain their skilled workers during the recession, but are too 'rule and policy bound' to make best use of them.

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