NZ Economic Growth: Unemployment Still The Big Global Concern
December 4th, 2009
As we approach the end of 2009, a turbulent year on financial markets, many economies probably feel like they have dodged a bullet - but another may still be speeding towards them - unemployment. The millions who have lost their jobs in the recession are unlikely to see a reprieve any time soon. Unemployment is still rising in most of the world’s largest economies. The US rate is around 10.2%, France 9.5%, Canada 8.6% and the UK 7.8%. The Eurozone has an unemployment rate of 9,7%. But this covers areas like Spain with 17.9% out of work and Latvia which has Europe’s highest unemployment rate at 19.7%.
Unemployment typically lags all other business indicators as businesses hold off adding staff in the early stages of recovery. There is also concern the true damage to jobs could be covered by things like Govt stimulus.
World bank president Robert Zoellick says unemployment poses a new risk to the global economy in 2010, as it stops household spending. Most of the global banking system is still dependent on state support. There is talk of winding it down, but if it is done too early it could derail the global recovery. It is too soon to relax.
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