Development economist for the International Institute for Labor Studies in the International Labor Organization Dr Naren Prasad revealed Fiji is expected to be badly hit by the crisis.
Speaking on the ‘Social impact of the financial and economic crisis on small island countries of the Pacific’, Dr Prasad said it will take 5 years for unemployment to fall to its previous state.
“Fiji unemployment rate is expected to rise by 2.4 per cent from its current standing,” Dr Prasad said.
Unemployment rate now stands at 8.6 per cent and it is forecasted to increase to 11 per cent this year.
The overall unemployment rate for small islands states is expected to rise from 12.3 per cent to 14.8 per cent.
Dr Prasad also revealed that the poverty rate will also rise because of the global financial crisis.
Fiji’s poverty rate will rise by 7 per cent from 34 per cent where it currently stands to 41 per cent.
Poverty rate for the small island states now stands at 28 per cent and is expected to increase to 35 per cent.
