The job market needs loose monetary
policy, more monetary stimulus measures and a phasing out of support for the
unemployed, the International Labor Organization and the International Monetary
Fund outlined at their joint conference in Oslo.
The conference is looking for ways
to reduce the number of unemployed people, now estimated at 210 million
The ILO and IMF also estimate that
30 million jobs have been lost due to the financial crisis and another 440
million will need to be created over the next decade as the global population
spending — and when to cut it — is
dominating the economic debate at the moment and the boss of the ILO said we
need a balanced solution.
“The question is how soon and
how fast,” Juan Somavia, the director general of the ILO said.
“The feeling that many are having is that
if you do it too fast and too soon this very weak recovery in which we’re in is
probably going to be affected.”
Germany, which has seen unemployment fall to a 14-month
low on the back of an export boom, believes its response to the
crisis has been better than most.
“We invested more, we incurred
additional debt spending, but we combined it with a tri-partite approach,”
Germany Labour Minister Ralf Brauksiepe said.
The German response to the crisis
was helped by the frugal nature of both the government and the people before
the crisis hit, Brauksiepe said.
Norway has policies similar to
Germany’s and, with lots of oiland one of the
lowest unemployment rates on the planet, has the following advice for the rest
of the world.
“The most important thing we
have done is that we have a very close cooperation with parties in the labour
market, the trade unions and employees’ organizations and through that we’ve
managed the economy in a responsible way and kept wage increases down,”
Norwegian Prime Minister Jens Stoltenberg said.