The current weak economic recovery will keep unemployment rates in OECD countries high until at least the end of 2013, according to a new OECD report.
The Employment Outlook 2012 says that the OECD-wide joblessness rate is forecast to remain high at 7.7% in the fourth quarter of 2013, close to the 7.9% rate in May 2012. This leaves around 48 million people out of work across the OECD. In the Euro area, unemployment rose further in May to an all-time peak of 11.1%.
To get employment rates back to pre-crisis levels, about 14 million jobs need to be created in the OECD area. Young people and the low-skilled continue to bear the brunt of the jobs crisis. Moreover, job creation during the weak recovery of the past two years has often been concentrated in temporary contracts because many firms are reluctant to hire workers on open-ended contracts in today’s uncertain economic environment, says the report
“The recent deterioriation in the economic outlook is very bad news for the labour market,” said OECD Secretary-General Angel Gurría, presenting the report in Paris. “It is imperative that governments use every possible means at their disposal to help jobseekers, especially young people, by removing barriers to job creation and investing in their education and skills. The young are at most risk of long-term damage to their careers and livelihoods. Targeting the most cost-effective policies is essential.”…