Christine Lagarde, the managing director of International Monetary Fund, has described the current unemployment rates as `terrifying and unacceptable and has urged the world leaders to tackle the high number of people without jobs.

She focused her remarks particularly on Europe and the US and said that the upcoming meeting in Tokyo should display some bold steps from the member countries. She said that the slowdown in economy is not just due to the risks of a possible break-up of the Eurozone but also due to continuing uncertainties in different parts of the world.

"It is deterring investors from investing and creating jobs. We need action to lift the veil of uncertainty," said Lagarde. "We don't think it's sensible to stick to nominal targets. We think it's much more sensible to apply measures and let the stabilisers operate," she said.

She also indicated that the global lender has soften its stance on implementing strict austerity measures possibility as a fallout of the huge and continuing demonstrations in carious European cities including those in Spain and Greece. She said that the governments should not aim at achieving certain debt reduction targets but should now focus their actions on implementing reforms in their economies.