For those unfortunate enough to experience it, long-term unemployment - now, as in the 1930s - is a tragedy. And, for society as a whole, there is the danger that the productive capacity of a significant portion of the labour force will be impaired.

This crisis of long-term unemployment is having a profoundly damaging impact on the lives of those bearing the brunt of it. We know this thanks to a series of careful studies of the problem conducted in the depths of the 1930s Great Depression.

The 24% unemployment reached at the depths of the Great Depression was no picnic.

More pressure on China is inevitable. Without further adjustment by the Chinese, the global imbalances will worsen.

Why was there so much work-sharing in the 1930s? One reason is that government pushed for it. In his memoirs, President Herbert Hoover estimated that as many as two million workers avoided unemployment as a result of his efforts to promote work-sharing.

Unemployment has increased over the past few months, so consumer confidence is in danger of weakening with the work force feeling more insecure. This is a problem because that is the main engine of growth at the moment.