OECD says unemployment may at peak

08:13, July 08, 2010      

Email | Print | Subscribe | Comments | Forum 

The unemployment in OECD countries may have peaked or close to peak now, Angel Gurria, secretary- general of the Paris-based Organization of Economic Cooperation and Development, said Wednesday when releasing the 2010 Employment Outlook.

According to the report, there are 47 million unemployed people in the OECD area today, bringing the rate to 8.6 percent in May 2010, up by 50 percent compared to the level two years ago. In late 2007, the OECD jobless rate was at its 28-year low of 5.6 percent.

Though the rate may not climb higher, the lagging labor market weighed a lot on the fragile global economic recovery, Gurria said at the new conference. "This last challenge is ... the most critical policy challenge: the human cost of the crisis."

"Unemployment is unlikely to begin falling until the end of this year. Thereafter, the pace of decline is likely to be modest. As a result, the OECD unemployment rate many still be around 8 percent by the end of 2011," Gurria presented.

OECD report called member countries to create 17 million jobs to improve employment back to its before-the-crisis level, and to pay special attention to the young, low-skilled and long- unemployed people, because they are the group suffered the most and now forming structural unemployment threatening future generation.

The world-wide consensus on fiscal consolidation reached at the G20 summit at Toronto, Canada, should not affect public investment and governmental support to jump-start job creation, the OECD chief underlined.

Among difficult choices on allocation of scarcer public budget, it was essential to focus on cost-effective program and to target the most disadvantaged groups mentioned above, OECD said.

"The possibility of having high unemployment rates in 2012, 2013 and 2014 is threatening to mark whole generation and change our culture in deep ways," Gurria noted.

The 2008-09 recession impact on global labor market is comparable to the deepest earlier downturn following the first oil price shock in 1973, according to OECD report.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion