## Jobs and Growth: Can’t Have One Without the Other?

_IMF Blog, April 30, 2012_

## Source details

**Canonical URL:** [Jobs and Growth: Can’t Have One Without the Other?](https://www.imf.org/en/blogs/articles/2012/04/30/jobs-and-growth-cant-have-one-without-the-other)

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- [Markdown version](/en/blogs/articles/2012/04/30/jobs-and-growth-cant-have-one-without-the-other/index.md)
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## Bibliographic details
- Authors: Min Zhu
- Published: April 30, 2012

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### Key findings
- The IMF’s latest World Economic Outlook projects global growth of 3 ½ percent this year.
- Five years after the onset of the Great Recession, 16 million more people are likely to remain unemployed this year than in 2007.
- The bulk of this increase in unemployed people has been in the so-called advanced economies (the IMF’s term for countries with high per capita incomes).
- The average unemployment rate in these economies is expected to 7 ¾ percent.
- Several populous economies such as the United States, France, the United Kingdom are at or above this average.

### Employment trends and country examples
- Countries where GDP is expected to decline in 2012 and unemployment is expected to increase include: Cyprus, Greece, Italy, the Netherlands, and Spain.
- Countries where GDP is expected to grow in 2012 and unemployment rates are expected to decline include: Iceland, New Zealand, and the United States.
- While some declines are welcome, unemployment rates are still expected to remain high in most advanced economies this year.

### Growth–unemployment relationship
- The jobs picture remains grim primarily because the growth picture is weak.
- Chart evidence (described) shows that for advanced economies the change in unemployment rates expected between 2011 and 2012 correlates with the IMF’s forecasts for growth in 2012: negative or weak GDP growth corresponds with rising unemployment; positive GDP growth corresponds with falling unemployment.

### Policy response — priorities and short-term measures
- The IMF emphasized that “the highest priority, but also the most difficult to achieve, is to durably increase growth in advanced economies, and especially in Europe.”
- To solidify the weak recovery and contain downside risks, policies must be strengthened.
- Short-term policy measures recommended:
  - more efforts to address the euro crisis;
  - a temperate approach to fiscal restraint in response to weaker activity;
  - a continuation of the very accommodative monetary policies; and
  - ample liquidity to the financial sector.

*Source: Min Zhu, “Jobs and Growth: Can’t Have One Without the Other?,” April 30, 2012.*

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## Content in this bundle

- **WOW 2012 Summary FINAL_eng_corrected 27 april 9 15 am**
  - [WOW 2012 Summary FINAL_eng_corrected 27 april 9 15 am (Markdown version)](/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_179450.pdf.md){rel="alternate" type="text/markdown"}
  - [WOW 2012 Summary FINAL_eng_corrected 27 april 9 15 am (PDF)](/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_179450.pdf){rel="external" type="application/pdf"}

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## References

- [عربي](http://blog-montada.imf.org/?p=1202)
- [World Economic Outlook](http://www.imf.org/external/pubs/ft/weo/2012/01/index.htm)
- [https://www.imf.org/wp-content/uploads/2012/04/chart-11.jpg](https://www.imf.org/wp-content/uploads/2012/04/chart-11.jpg)
- [https://www.imf.org/wp-content/uploads/2012/04/chart-24.jpg](https://www.imf.org/wp-content/uploads/2012/04/chart-24.jpg)
- [https://www.imf.org/wp-content/uploads/2012/04/chart-3.jpg](https://www.imf.org/wp-content/uploads/2012/04/chart-3.jpg)
- [World Economic Outlook](http://blogs.imf.org/2012/04/17/mediocre-growth-high-)
- [euro](http://www.imf.org/external/pubs/ft/survey/so/2012/NEW042112A.htm)
- [temperate approach](http://blogs.imf.org/2012/04/20/making-goldilocks-happy/)
- [financial sector](http://blogs.imf.org/2012/04/18/global-financial-stability-whats-still-to-be-done/)

_Source: https://www.imf.org/en/blogs/articles/2012/04/30/jobs-and-growth-cant-have-one-without-the-other_