Reply #18: Recovery May Not Create Job Growth, IMF's Strauss-Kahn Says (PROBLEM IS WORLD-WIDE)

[Demeter]

http://www.bloomberg.com/news/2010-09-13/global-economic-recovery-may-not-spur-job-growth-imf-s-strauss-kahn-says.html

The global economy may not generate much employment growth in coming years, with Europe most at risk of a sluggish and jobless recovery, International Monetary Fund Managing Director Dominique Strauss-Kahn said in an interview.

IMF chief economist Olivier Blanchard last week warned that joblessness in the U.S., Europe and elsewhere will likely linger for months. The Organization for Economic Cooperation and Development said policy makers may need to extend or bolster stimulus programs as growth proves slower than projected.

“The recovery is not enough, you need to have a recovery with jobs,” Strauss-Kahn told Bloomberg Television yesterday in Oslo. “The worst thing to do would be to believe that because we escaped -- at the edge of the cliff -- the big crisis that could have happened 1 1/2 years ago, we are safe. We’re not safe yet.”...The recovery is “coming not as fast and as strong as we expected, but it’s still a recovery with some uncertainties,” Strauss-Kahn said ahead of today’s joint conference with the International Labor Organization. “The question now is not only to boost growth but to boost growth in a way that will be able to create millions of jobs that we need.”

The IMF is scheduled to release its new forecast of global growth in October. Growth is strong in most Asian countries, with some expanding at rates of 6 percent to 8 percent, Strauss- Kahn said. South American economies including Peru and Chile are also expanding fast and the recovery in Africa is coming earlier than expected, he added.