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Wednesday, May 26, 2010
OECD says Rich Countries are Recovering Faster than Expected but Unemployment Still High
The article states that the OECD boosted their projections for economic growth in 2011 and 2012, yet there is still the ever-present issue of unemployment that needs to be dealt with. They also give unemployment projections that are looking very dim (almost double digits for Europe and the US). How important is it for the future growth of Western countries to prevent this kind of long-term unemployment?
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I can't conceive of an economy that experiences growth where employment continues to go down. It seems that if the economy grows (in sectors other than finance) it will necessarily create jobs.
ReplyDeleteIt is very important I think because as we have seen that the downfall of many Western countries have had a very adverse effect on the global economy. It is very important to decrease unemployment in order to get these countries of the recession and restore confidence amongst people.
ReplyDeleteIt is hard to force the creation of new jobs and the lowering of unemployment. Preventing long term unemployment takes a lot of indirect actions that will eventually start to decrease unemployment. Other problems need to be dealt with first. Unemployment is one of the last measures of a recovery to improve, so it will take time.
ReplyDeleteUnemployment statistics may be innaccurately skewed as workers reenter the labor force because of increased confidence in the economy. While employment is obviously an important part of economic recovery a certain level of unemployment is normal and job creation is a slow process. I think as the economy improves unemployment will decrease but there will be a lag factor as confidence increases and companies boost investments.
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