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The following article was published in our article directory on September 9, 2010.
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Global Economic Recovery Should be to Solve the Employment Problem

Article Category: World Affairs

Author Name: Amanda xzh

Since late last year, has begun a modest recovery in the global economy, countries high unemployment has become a full recovery, the biggest "stumbling block", how to crack the next stage of the employment dilemma as national economic policy priority, global economic recovery is the key to achieving sustainable.

Since the beginning of this year, the major western economies, the employment market has been no substantive improvement. U.S. Labor Department's latest report showed the U.S. unemployment rate in August was 9.6%, the tenth consecutive months or more remained at 9%.

As of July, the EU-27 unemployment rate has been maintained for 6 months, 9.6% is the highest level since statistics; the euro zone unemployment rate for 5 consecutive months at 10%, the highest since the establishment of the euro area, the most bad record. From last year to the second quarter of this year, the British unemployment rate has been 7.8 to 8 percent of the high hover, the second half of 1996, the highest level since. And because of insufficient domestic demand and the obvious trend of hollowing out of domestic industry, this year Japan's unemployment rate has been hovering around 5% of the peak.

Even more alarming is that global youth unemployment is extremely severe. Official figures released by the United Kingdom, the United Kingdom last year's college graduates, about 10% have yet to find a job. French 15-year-old to 24-year-old youth unemployment rate reached 24.1%.

International Labour Organization released a report in August to remind national guard a "lost generation" of risk. The organization predicted that global youth unemployment rate this year will reach a record 13.1%.

Historical experience, employment generally lags behind the recovery of economic Fu Su, the because businesses Zai economic recovery has been completely Queren Qian, Tong Chang Tai Duer who wait will not be immediately Zheshouzengjia employees to expand reproduction. This is also known as the "jobless recovery."
In addition, governments in order to reduce the high fiscal deficit, forced the implementation of fiscal austerity, but also led to the recovery process of the current round of unemployment a major reason for the slow improvement. Such as the British government's austerity measures have led to 500,000 in the next few years, public officials lose their jobs, while government spending cuts also led to a lack of adequate implementation of employment promotion scheme funding.

Guard against the employment problem "spillover"

First of all, the job market downturn affecting consumer spending. Consumers worried about unemployment or reduced income due to the choice cautious consumer, it brings risks to the economic recovery. Consumer spending accounts for about U.S. gross domestic product of 2 / 3, is the main driver of economic growth. The second quarter of this year, according to the U.S. economy grew only 1.6% annual rate for the lowest quarterly increase since the economic recovery, one of the important reasons is that weak consumer spending.

Europe, according to Eurostat data, EU to resume economic growth over the past four quarters was mainly driven by exports, domestic demand is still sluggish personal consumption, or even been shrinking. But with the EU's largest trading partner the United States in recent signs of slowdown of economic growth, European Union over-dependence on exports of such recovery mode will be affected, to resolve employment, expanding domestic demand for European economic recovery has strong practical significance.

In addition, the weak job market may also produce a series of chain reaction, the "adverse reaction" or even "spillover" to other countries. In the United States, weak job market, but also to some extent, to promote domestic protectionism, through trade and investment channels hinder the global economic recovery. Last year the U.S. Department of Commerce's International Trade Department has initiated 34 anti-dumping and countervailing investigations, much higher than 19 since 2008. Strengthening the U.S. Department of Commerce recently issued 14 recommendations for trade remedy measures, aimed at strengthening anti-dumping, countervailing measures such as enforcement.

To protect domestic employment, the government recently introduced the New Deal Obama restrictions multinational outsourcing, by reducing profits for multinational companies overseas tax credit, inhibit U.S. companies will shift production to overseas.

"Preserve jobs" and "promoting employment" two-pronged

In response to high unemployment, many countries introduced measures to resolve the problem of unemployment. In general, the response can be divided into "protect jobs" and "to promote employment," two aspects: on the one hand try to maintain their employment through various measures to help the job market "pain"; the other hand, through the employment promotion plan to boost employment posts increase.

August, Obama signed a total of 26 billion U.S. dollars of the bill, designed to help ease the financial constraints of state governments, to save about 30 million public sector jobs. In addition, Obama is also pushing Congress to pass a total of about 42 billion U.S. dollars in small business relief bill to provide tax breaks for small businesses, strengthen its financing capacity, to prevent small businesses to lay off because of operational difficulties.

In the "security of employment", the EU state encourages enterprises to reduce working hours Lai replace the layoffs, This will not only avoid Dapi unemployed, and once the economic situation improves, business You do not have the manpower for re Guyonggeshi Er worry.

To promote employment, essentially is to promote economic growth, thereby stimulating business expansion. Early last year, Obama launched massive economic stimulus package the government plans within two years to save or create 3.5 million jobs. The U.S. Congress also raised the "Made in America" package, with a total investment 17 billion U.S. dollars, to help the manufacturing industry to regain competitiveness and to restore the industry over the past 10 years, lost about 5.6 million jobs. Barack Obama on Sept. 6 announced a 50 billion U.S. dollars was also large-scale infrastructure projects.

To encourage the unemployed start their own businesses, the EU launched in March this year, a total of 500 million euros in the micro-loan scheme, sub-8 was commenced to the economic crisis for those losing their jobs find alternative livelihoods to provide a choice.

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