IMF Survey: Oslo Conference Calls for Action to Avoid Jobless ‘Lost Generation’
IMF News, September 13, 2010
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Bibliographic details
- Published: September 13, 2010
Overview
- Publication: IMF Survey online
- Date: September 13, 2010
- Spotlight: human costs of around 210 million unemployed across the world
- Central message: The global recession has created a “wasteland of unemployment” that could scar society for years unless a jobs-focused policy response is implemented.
Jobs crisis and human costs
- The labor market is described as “in dire straits” and the Great Recession has “left behind a wasteland of unemployment.”
- Human costs highlighted:
- Loss of livelihood, security, and dignity for millions of people.
- Long-lasting scars from unemployment: increased risk of health problems and premature death; negative impacts on children’s schooling; reduced faith in public institutions and democracy.
- The global crisis is “not over until unemployment starts falling” and growth alone cannot be expected to automatically create the needed jobs.
Youth unemployment and labor-force statistics
- Youth (ages 15–24) currently represent one-quarter of the world’s labor force, at 619 million.
- Youth unemployment rose to 13 per cent in 2009, equating to 81 million young people.
- Spotlight figure: around 210 million unemployed across the world.
Conference participants and perspectives
- Event: historic conference in Oslo, hosted by Prime Minister Jens Stoltenberg of Norway; co-sponsored by the IMF and ILO.
- Attendees included leaders from government, labor, business, and academia; named speakers or participants included Dominique Strauss-Kahn (IMF Managing Director), Juan Somavia (ILO Director-General), José Luis Rodríguez Zapatero (Spanish Prime Minister), Ellen Johnson Sirleaf (President of Liberia), Sharan Burrow (ITUC General Secretary), Christine Lagarde (France Finance Minister), Iain Duncan Smith (U.K. Secretary of State for Labor), and George Papandreou (Prime Minister of Greece).
- Key perspectives:
- “The crisis of unemployment is the worst one facing the world right now.” — José Luis Rodríguez Zapatero.
- “The rules of the game have changed… We need to think differently. Why? Because the future of millions of people is at stake. Because the future of our world—prosperity and peace—is at stake.” — Dominique Strauss-Kahn.
- “We need to humanize this global economy.” — George Papandreou.
- “When growth is not fair, it becomes unsustainable… High levels of employment creation should be a key macroeconomic objective alongside low inflation and sustainable budgets.” — Juan Somavia.
- Warning on fragile states: large-scale unemployment can damage social cohesion (Ellen Johnson Sirleaf).
- Call for a “job-charged” recovery and continued coordination between major economies through the Group of Twenty (Christine Lagarde).
- Suggestion to reexamine retirement age as part of response (Iain Duncan Smith).
Conference outcomes and agreed actions
- IMF and ILO agreed to work together on policy development in two specific areas:
- Explore the concept of a social protection floor for people living in poverty and in vulnerable situations, within the context of a medium- to long-term framework of sustainable macroeconomic policies and strategies for development.
- Focus on policies to promote employment-creating growth.
- Agreement on the central role of effective social dialogue to build consensus for difficult adjustment challenges and to ensure social consequences are taken into account.
- Emphasis that IMF and ILO cooperation should boost international cooperation and help make the financial system an effective support of the real economy.
Policy recommendations and priorities emphasized
- Set job creation as a priority using all available policy tools.
- Promote employment-creating growth alongside social protection measures.
- Consider medium- to long-term sustainable macroeconomic policies as the context for social protection initiatives (social protection floor).
- Strengthen social dialogue among governments, labor, and business to build consensus on adjustment and social consequences.
- Reexamine retirement age policies where appropriate to reflect labor market realities.
Projected impact and aspirational goals
- The conference aimed to identify a new, collective way to address unemployment with the hope that “maybe in four or five years time, we will be able to say ‘I was in Oslo’ where it all began.” — Dominique Strauss-Kahn.
- Emphasis that tackling the jobs crisis is critical for meaningful global economic recovery, social cohesion, and peace.
Source: IMF Survey: Oslo Conference Calls for Action to Avoid Jobless ‘Lost Generation’, IMF Survey online, September 13, 2010.