OECD unemployment seen hitting 10 per cent next year
16 Sep 2009
Unemployment in the member countries of the Organisation for Economic Cooperation and Development will hit a post-World War II high next year, despite the signs of a global economic recovery, according to the OECD's latest employment outlook report.
Unemployment levels in the 30 industrialised countries belonging to the OECD will surpass the current peak of 8.5 per cent in 2010, the OECD report said.
Governments must act fast and decisively to prevent the recession turning into a long-term unemployment crisis, according, OECD secretary-general Angel Gurría said.
"Employment is the bottom line of the current crisis. It is essential that governments focus on helping jobseekers in the months to come," he said at the launch of the OECD's Employment Outlook 2009.
While this called for a co-ordinated policy response, he said the plight of those in the developing world that often cannot benefit from well-designed social protection systems could be worse still.
"Despite early signs of economic recovery, in most countries unemployment will rise further next year and remain high for the immediate future. The unemployment rate has already reached a post-war record high at 8.5 per cent in the OECD area, corresponding to an increase in more than 15 million in the ranks of the unemployed since the end of 2007. If the recovery fails to gain momentum, the OECD unemployment rate could even approach a new post-war high of 10 per cent, with 57 million people out of work" Gurría said.
Governments, he said, must urgently reassess and adapt their labour market and social policies in order to prevent people from falling into the trap of long-term unemployment.
