Jobs at Risk, IMF Pessimistic

Dominique Strauss-Kahn, the managing director of the IMF (International Monetary Fund) is not very optimistic, especially when he is discussing the job market around the world.

According to Strauss-Kahn, the world has lost over 30 million jobs since the economic crisis began in 2008. Apparently that is only the beginning: Kahn added that the world is expected to lose no less than 400 million jobs in the coming years.

Kahn, who spoke at a Morocco Humanity development convention, said that the world economy’s number one priority is employment, priority number two is employment and priority number three is also employment.

The industrial countries led by the G20 must understand that such a scenario also has a serious negative impact on a global scale.

Let's take Spain as an example. The country has the highest unemployment rates in Europe – nearly 21 per cent. In addition, look at the country's internal and external debts, the risks of being economically downgraded and the social impacts on the households in term of paying mortgages, having a car and finally making a simple living.

Today, stronger European countries like France and Germany are supporting countries like Spain and the rest of the PIIGS. Can you imagine 21 per cent unemployment rates all over Europe? I cannot!!!

Look at the unemployment rates in Germany in the 1920's and early 1930's. This was one of the main reasons why the Nazi monster came to power, and we all know what happened later on.

Strauss-Kahn does not speak about Spain nor does he speak about Europe. He speaks of the entire globe, and the figures of 400 million people with no jobs are something the world cannot afford under any circumstances.

Strauss-Kahn urges the world economies to solve the problems in the financial sector. Good regulations that will monitor and balance incomes and expenses are a condition to a sustainable growth that will finally get us more jobs.

Better supervision is needed in order to effectively implement the decisions that the governments are taking.

Recently we wrote in Shalom Life about the British government's intention to fire 500,000 people from the public sector. Does the British government have an alternative plan for these employees? I am not so sure.

Is Spain doing anything effective to reduce its 21 per cent of unemployment? I am not so sure.

Can Canada face an unemployment crisis? Probably yes. According to Statistics Canada the figures in September 2010 were 8 per cent.

However, our currency is getting stronger, data which is not so good for the labor market. Personally, I will be happy to see a weaker Canadian Dollar in the future.