Major economies take offensive measures against high jobless rates

BEIJING, Sept. 8 (Xinhua) -- With jobless rates still hovering high, the ailing world economy, despite seemingly in slow recovery, needs a more effective cure to avoid a possible return of recessions.

The International Monetary Fund, or the IMF, said in its report that the global unemployment rate hit a record high over the past 20 years and could even go higher.

For countries and regions like the United States, the European Union (EU), France, Britain and Japan, which were among those hit hardest by the global financial crisis, they have no choice but to mobilize for a campaign to "reduce casualties" in the job market.

Tax breaks and infrastructure investment are some of the cardinal weapons that U.S. President Barack Obama has indulgently preferred to spur job creations, and he opened fire Monday by promising the American public "the best infrastructure in the world".

Despite the 50-billion-U.S.-dollar infrastructure plan to repair highways and bridges, Obama is also calling on Congress to pass new tax relief worth 200 billion dollars over two years that would allow businesses to write off 100 percent of their new capital investments through 2011.

These proposals, if not purely politically motivated for the November election, are facing a highly-partisan congress and foggy future.

"The White House is missing the big picture. None of its plans address the two big problems that are hurting our economy: excessive government spending, and the uncertainty that their policies....are creating for small businesses," said House Minority Leader John Boehner.

Right now, the U.S. unemployment rate still stands as high as 9.6 percent, and economists points out investments in infrastructure do not stimulate the economy quickly and would well trigger further deficits hikes.

Plagued by the same symptoms of high jobless rate, the 27-member EU is also wrecking its brains for solutions to sustain its fledgling growth, using different pills.

Unlike the U.S. massive infrastructure rehabilitation, the EU is trying to turn the tide around by exploring new growth poles like the low-carbon economy, providing laid-offs with job-training opportunities and reforming the social welfare system.

To encourage more self-employers, the EU put in place this March a micro-credit program in hope of providing small loans to around 45,000 budding entrepreneurs over the next eight years.

The loan program is well targeted as some 99 percent of business start-ups in Europe are micro or small enterprises and one-third of these were launched by people who have lost their jobs.

Shrinking working hours instead of simple-minded employee-sacking is another different approach taken by EU companies, compared with their transatlantic counterparts.

Such practices would both avoid pushing massive laid-off workers to the streets and save troubles to hire suitable hands once the economic situation improves.

Increasing jobs is also a grueling task facing Japan, whose economic advancement heavily depends on manufacturing and exports.

According to a recent research report published by Japan's Ministry of Economy, Trade and Industry, about 40 percent to 60 percent of manufacturing firms would transfer their production lines to overseas if the Japanese yen keeps strong against the U.S. dollar and other major currencies.

The Japanese government rolled out a series of stimulus measurers late last month to improve employment and encourage consumer and business spending.

The stimulus package tried to better employment conditions for youths and help university and high school graduates to find jobs. It will offer financial incentives for businesses in the fields of environmental protection and construction to boost employment.

Japan would also prohibit firms from employing foreign workers in such areas as manufacturing, so as to stabilize and expand domestic employment.

As these world major economies are maneuvering to fend off a potential double-dip, it's still too early to tell whether their measures are effective or not.

Yet one thing is for sure. Jobs would come back only when the economy starts to grow and consumers' confidence begins to rise.