|
The global economic crisis has led to a sharp slowdown in growth and an even greater slowdown in employment creation. The resulting deterioration in the quality of employment has exacerbated the longer-term trend of rising inequal-ity. Jobless growth has dampened output growth through a worsening income dis-tribution. Wages are costs on the supply side but are also incomes on the demand side, so that prot-led growth and wage-led growth are complements, not substitutes. Thus, growth can create jobs, while added jobs can drive growth. More employ-ment and better jobs can also mitigate rising inequality. If macroeconomic policies focus on fostering employment creation and supporting economic growth, rather than on price stability and balanced budgets, employment would revive growth and reduce inequality |
