We have launched our mobile app, get it now. Call : 9354229384, 9354252518, 9999830584.  

Current Affairs

IMF outlook and status of jobs

Date: 21 October 2021 Tags: Miscellaneous


The World Economic Outlook (WEO) has been unveiled by the IMF. This is the second such report of this year.



The World Economic Outlook (WEO) is release twice a year in April and October. They are important as they set the benchmark for all economies to compare with one another.



  • The main outcome of the report indicated that the momentum of economic recovery has slowed down due to the pandemic-induced supply disruptions. 

  • The main concern expressed by the IMF was regarding the increasing inequality among nation rather than the growth numbers.


Main outcomes

  • The advanced economic group is likely to increase its growth numbers by 0.9 per cent in 2024 after regaining its pre-pandemic levels in 2022.

  • The growth rate of emerging economies is expected to remain 5.5 per cent below the pre-pandemic forecast in 2024.

  • The main forecast is that the employment growth likely to lag the output recovery. It is expected to be larger in emerging markets and developing economies.

  • High skilled and prime age workers are expected to spare better than young and low-skilled workers.


Reasons for slowing of employment growth

  • Difference in economic policies and large disparities in vaccine access are the main reasons behind the weak numbers.

  • Other reasons include fears of on-the-job infection, frictions in job searches and matching, labor demand changes etc.


Implications for India

  • Recovery in employment lags behind the recovery in output. The number of people employed was 11 million below the pre-pandemic levels.

  • This indicates that large population will be left out of the benefits of higher GDP growth. The overall growth momentum will be arrested on longer run.


Unemployment and growth

  • India is witnessing a K-shaped recovery. Some sectors are witnessing faster growth while others are still lagging behind.

  • Majority of India’s employment is in the informal or unorganised sectors. Inability of the sector to create jobs will prevent economy from recovering.