Global Recession and Unemployment

Background:

The global recession has raised unemployment rates nearly to double digits in developed countries and to less drastic but still worrying levels in developing countries. Since late 2009, the pace of job losses has slowed in many countries due to a pick up in  demand and credit conditions. But unemployment rates might continue to increase through 2010, constraining global consumption and pushing many workers into poverty. Inadequate safety nets and retraining programs and slow pick-up in hiring pose risks of lengthy unemployment duration and deterioration of human capital. To reduce the risks of structural unemployment and discontent among workers, governments are implementing fiscal stimulus to prevent lay-offs and boost hiring, and are also resorting to populist measures.