IMF fears 'social explosion' from world jobs crisis

[paparush]

Source: Telegraph

America and Europe face the worst jobs crisis since the 1930s and risk "an explosion of social unrest" unless they tread carefully, the International Monetary Fund has warned.



The labour market is in dire straits. The Great Recession has left behind a waste land of unemployment," said Dominique Strauss-Kahn, the IMF's chief, at an Oslo jobs summit with the International Labour Federation (ILO).
He said a double-dip recession remains unlikely but stressed that the world has not yet escaped a deeper social crisis. He called it a grave error to think the West was safe again after teetering so close to the abyss last year. "We are not safe," he said.

A joint IMF-ILO report said 30m jobs had been lost since the crisis, three quarters in richer economies. Global unemployment has reached 210m. "The Great Recession has left gaping wounds. High and long-lasting unemployment represents a risk to the stability of existing democracies," it said.
The study cited evidence that victims of recession in their early twenties suffer lifetime damage and lose faith in public institutions. A new twist is an apparent decline in the "employment intensity of growth" as rebounding output requires fewer extra workers. As such, it may be hard to re-absorb those laid off even if recovery gathers pace. The world must create 45m jobs a year for the next decade just to tread water.
Olivier Blanchard, the IMF's chief economist, said the percentage of workers laid off for long stints has been rising with each downturn for decades but the figures have surged this time.
"Long-term unemployment is alarmingly high: in the US, half the unemployed have been out of work for over six months, something we have not seen since the Great Depression," he said.

Read more: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8000561/IMF-fears-social-explosion-from-world-jobs-crisis.html

[fasttense]

1. They keep pussy footing around it.

Why not just quit pretending and call this economic downturn the 2nd RepubliCON Great Depression and be done with it?

When you don't have jobs, and your not creating enough jobs to keep up with the growing labor market, it is a depression.

There is no recovery until the jobs are back.

[No Elephants]

4. That name would be inaccurate.

This mess has been decades in the making and Clinton's role was not insignificant by any means. And we now have a Democratic President looking to Republicans and to Republican and neolib "remedies."

Blaming this all on Republicans may make you feel good momentarily, but our country's problems are well beyond "yeay, blue team, boo red team" and have been since at least 1980 . Follow the money. It runs politics and politicians--and they run us.

[notadmblnd]

6. Personally, I am convinced that Clinton made a deal with repukrs to pass NAFTA

in order to become President and that is where blame lies where Clinton is concerned. And yes, I agree that this all started in the 80's.

[L0oniX]

7. +1

[glitch]

9. Well said. 1980 was when they started working publicly.

But they've been at this takeover since before I was born, and I am over 50.

[CLANG]

2. Duh! DOH!!

[Canuckistanian]

3. It won't be a 'social explosion'

It'll just be the return of the guillotine.

[Bragi]

5. With an American twist, maybe

Following the leadership given on Fox news, American workers will demand that those who represent the peasants be beheaded, and more power given to the aristocrats.

[WhiteTara]

12. sadly that is true n/t

Remember Biafra.

[dogfacedboy]

11. Bastille Day?

[Bragi]

13. Or reverse-Bastille day

I guess my serious point was/is that Americans now seem to be incredibly docile.

If the government screws around with the pensions of Greeks, or the French, at least they have the self-respect and social cohesion needed to go on strike, burn a few things, hit the streets, etc.

In the U.S., it seems like you can export someone's job, cancel their pension, steal their savings, foreclose on their house, etc. and they quietly blame themselves for not working hard enough, being smart enough, whatever.

Which is why whenever I see the words "social unrest" I think it either can no longer happen in the U.S (due to social isolation, media?) or if unrest did happen, it would probably take a very weird, individualistic, and maybe sociopathic, form.

[Dan]

16. ...umm

Basket making potentially a good career option?

[L0oniX]

8. We are at a point that is very similar to that of the 30's just before FDR created the CCC.

People were on the verge of a full revolt because there were no jobs.

[defendandprotect]

14. Agree -- never did find out what the homeless count was at that time ....

but they also had a lot of liberals/progressives around putting forth liberal/progressive

solutions and not a press which was monopolized by right wing corporate interests!

Strong participation in Communist Party of America --

And Upton Sinclair's EPIC -- Econmic Progress in California -- was popular until attacked

by right wing forces, with help of Hollywood!



Think it was 25% unemployment which was fairly strickly males who supported families -- ??

[L0oniX]

15. Yes it was about 25% and over half were young men. Many rode the rails and drifted until FDR's CCC

[defendandprotect]

17. Thank you --

Most internatized guilt for being jobless --

destruction to their families --

destroyed lives -- led to alcholism --

Can't believe that Dems/Obama so infrequently refer to our homeless and impoverished!

[DesertDiamond]

10. Tread carefully???? They need to do a lot more than that!!!!!