| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Global Economy Last Updated: Sep 9, 2010 - 5:09:41 PM

Global financial crisis increases unemployment to more than 210m -- up over 30m since 2007
By Finfacts Team
Sep 9, 2010 - 1:53:06 AM

Email this article
 Printer friendly page

The global financial crisis has sharply increased unemployment across the world to more than 210m people, an increase of over 30m since 2007, hitting advanced economies especially hard and having long-term social repercussions, including on health and the children of those laid off, the IMF says.

The International Monetary Fund and the International Labour Organization (ILO) issued the stark assessment of the outlook for employment in the wake of the global financial crisis, saying that the world faces major challenges in creating enough quality jobs to sustain growth and development.

The two organizations issued a background document ahead of a joint high-level IMF-ILO conference on September 13 in Oslo, hosted by Norwegian Prime Minister Jens Stoltenberg, to explore new ways of forging a sustainable, job-rich economic recovery. The one-day conference on “The Challenges of Growth, Employment and Social Cohesion” will bring together political, labour, and business leaders, as well as leading academics.

In many advanced economies, unemployment remains at very high levels, with little sign of an early fall, while in emerging and developing countries the economic shock hit jobs in export sectors hard, but these are now recovering, in part as exporters have diversified their markets to rely less on those of the advanced economies.

The 2007–09 slowdown also hit the large informal economies of the developing world. Informal employment has increased, and the numbers of working women and men who cannot earn enough to keep themselves and their families out of poverty have risen.

Painful legacy

Lead speakers at the conference include President Ellen Johnson Sirleaf of Liberia, Prime Minister George Papandreou of Greece, Prime Minister José Luis Rodríguez Zapatero of Spain, Finance Minister Christine Lagarde of France, UK Secretary of State for Work and Pensions Iain Duncan Smith, and International Trade Union Confederation General Secretary Sharan Burrow. The conference will be chaired by IMF Managing Director Dominique Strauss-Kahn and ILO Director General Juan Somavia.

“The Great Recession has created a painful legacy of unemployment,” said Strauss-Kahn, “and this devastation threatens the livelihood, security, and dignity ofms of people across the world. The international community must rise to meet this challenge. Now is the time for our collective action.”

The unemployment rate has increased by 3%age points in advanced countries since 2007 and by a ¼ percentage point in emerging markets. Within the advanced economies, some of the largest increases in the unemployment rate have occurred in Spain - - where the rate increased by nearly 10 percentage points - -the United States, and New Zealand. In contrast, in Germany and Norway, the unemployment rate barely budged.

Youth (ages 15–24) currently represent one-quarter of the world’s labour force, at 619m. Despite a number of years of rapid economic growth, youth unemployment has remained stubbornly high, rising to 13% in 2009, or 81m.

If the effects of past recessions are any guide, the cost to those who become unemployed could be a persistent loss in earnings, reduced life expectancy, and lower academic achievement and earnings for their children. And unemployment is likely to affect attitudes in a manner that reduces social cohesion, a cost that all will bear.

Evolving three-part strategy

The IMF said that, to their credit, most countries mounted a strong three-part policy response to try to minimize these costs:

  • To support aggregate demand through monetary and fiscal policy actions.

  • To ease the pain in labour markets through short-term work programs and provision of unemployment insurance benefits.

  • To accelerate jobs recovery through the provision of subsidies of various kinds.

In 2009, in response to the crisis, mechanisms to stimulate labour demand were widely used in many advanced countries. In particular, subsidies (direct job subsidies, wage subsidies, or reductions in payroll taxes) were targeted at specific groups in the labour force that are most vulnerable to joblessness: the long-term unemployed and/or youth.

Over the remainder of 2010 and throughout 2011, the IMF says fiscal policy should remain supportive of recovery. But clearly, the room for public spending varies across countries, and the three-part strategy should be adapted to country budgets and specific circumstances.

More jobs needed

In the 10 years to 2009, global employment grew from 2.74bn to 3.21bn, with well over half of the world’s workers (56.3%) located in Asia. Global unemployment, which had been over 6% for several years before decreasing between 2004 and 2007, increased dramatically in 2009. Now in 2010, around 210m are unemployed—a rise of over 30m since 2007.

With annual labour force growth of 1.6% adding more than 45m job seekers per year to the global labour force, the challenges exacerbated by the crisis are unlikely to diminish. In the next 10 years, more than 440m new jobs will be needed to absorb new entrants into the labour force, and still more to reverse the unemployment caused by the crisis. In addition, developing countries need to grow rapidly to absorb their expanding labour force and to meet the demand for jobs from migrants leaving rural areas.

Related Articles
Related Articles

© Copyright 2010 by Finfacts.com

Top of Page

Global Economy
Latest Headlines
Strong Swiss franc gloom deepens for exporters
Global investors shift focus to China; EM outflows surge to $1tn in 13 months
Global oil glut will continue into 2016
Stable growth momentum in OECD area but slowing expected in China
Prices for major food commodities in July lowest since September 2009
Global manufacturing in July weakest level in two years
US, China and UK lead top 25 target countries for foreign direct investment
Budget surpluses rare in developed countries from 1980s; Italy, France, Greece had none in 60 and 40 years
Singapore, London and Shanghai top cities for new FDI projects in 2014; Dublin in 11th place
Exchange rates shuffle as Dublin ranked 49th most expensive city; Paris at 46; Berlin at 105
Western consumer groups under pressure in China and India
Developing countries facing “structural slowdown” likely to last for years
OECD BEPS Tax Project: Amazon books UK sales in UK; Australia proposes up to 100% in penalties
Emerging Markets Index falls to 12-month low in May as manufacturing contracts
US and world economies slowing in 2015 — OECD
Global manufacturing production rose slightly in May; Trade flows weak
GDP growth in OECD area slowed to 0.3% in the first quarter of 2015
Only one quarter of workers worldwide have stable employment contracts
Automatic Exchange of Tax Information: OECD says countries won't be able to game system
Gates Foundation loses in Swiss family's shares coup
Minimum wage levels in OECD countries
Brent oil benchmark over $68 a barrel - up almost 50% in 2015
Global growth slows and manufacturing dips to 21-month low
Family-controlled firms dominate European business
Top 10 of world’s 250 largest consumer products companies account for 30% of sales
Nine of world's 20 fastest growing economies in Africa
Globalisation maybe stalling as trade growth remains weak
Global growth prospects uneven across major economies says IMF
Emerging markets growth lowest since 2009; Global growth at 30-year average
China's economic rebalancing hitting Latin American economies
New York, London, HK & Singapore top global financial centres index; Dublin recovers
Global growth in modest expansion from low oil prices/ monetary easing says OECD
Composite leading indicators point to positive change in growth momentum in the Eurozone
Global labour market trends portend paradise for some but uncertainty for many workers
Vienna remains top of World Quality of Living Rankings in 2015; Dublin at 34
Zurich and Geneva overtake Singapore to become world's most expensive cities
HSBC Switzerland and Falciani: How it happened
Global economic power to continue shift from advanced economies
Global food price index falls in January; Cereal output set for record
Global debt has risen $57tn or 17% of world GDP since 2007