IMF Says Workers May Need Wage Subsidies to Cushion Trade Shocks
- Fund publishes global trade report with World Bank and WTO
- Countries need to help workers that get left behind: report
Measures including job-search assistance and training programs were recommend for employees to help cushion against trade shocks.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
The world’s top global economic organizations urged nations to consider policies that would cushion the blow to workers of trade shocks, such as by compensating employees for lost wages.
It’s critical for countries to adopt policies that help workers adjust to the negative effects of trade, according to a report by the International Monetary Fund, World Bank and World Trade Organization. “With the right policies, countries can benefit from the great opportunities that trade brings and lift up those who have been left behind.”