World economy - unemployment

Unemployment will continue to rise for another year, says IMF

Article published on the 2009-10-05 Latest update 2009-10-05 15:37 TU

Dominique Strauss-Kahn in Istanbul, 5 October 2009
(Photo: Reuters)

World unemployment will not peak for at least another eight to twelve months, said the head of the International Monetary Fund (IMF) Monday. Dominique Strauss-Kahn warned that while economies are on the path to recovery, employment will lag behind.

The peak could occur within ten to twelve months in developed countries, Strauss-Kahn told a news conference in Istanbul, at the start of the IMF and World Bank meetings, but it will take longer for developing countries.

"The problem we are going to face in the coming year may be much more important, much more difficult to solve in low-income countries and some emerging countries than in advanced economies," he said.

Fighting unemployment is at the top of the agenda of the IMF and World Bank meetings, which run through 7 October.

Unemployment in low-income countries, said Strauss-Kahn, is a “question of life and death, or starvation.”

He asked the 186 members of the Development Committee to increase World Bank resources so it can help developing countries.

"What the World Bank, and for a much more limited part, the IMF can provide to these countries will be absolutely critical and that's why the question of resources is so important," he said.