Economics
Millions of Missing Jobs Should Make Inflation Hawks Think Twice
- ILO says world is 75 million jobs short of its pre-crisis path
- Officials at Fed, ECB say inflation pressures likely temporary
This article is for subscribers only.
Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
One reason why so many policy makers are refusing to panic about inflation is that the world economy is still short so many millions of jobs.
The global employment shortfall from the pandemic is predicted by the International Labour Organization to be 75 million this year. Nor does it expect the gap to be closed in 2022, when it reckons the world will still be 23 million jobs short of its pre-Covid path even as economies rebound.