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OECD predicts record eurozone unemployment for 2014

, July 17, 2013, 0 Comments

The Organization for Economic Cooperation and Development (OECD) believes unemployment in the eurozone will reach a new record by the end of 2014. In other industrialized countries job creation will be picking up slowly.

Mass unemployment will remain a problem in the 18-nation eurozone, set to increase from 12.1 percent to 12.3 percent by the end of 2014, the Organization for Economic Cooperation and Development (OECD) said Tuesday.

However, there would be vast national differences in the jobs markets of the single currency area, the OECD said in its annual Employment Outlook report.

The jobless rate in Germany, for example, was expected to fall below the current level of 5 percent, while those in Spain and Greece would jump to around 28 percent, the report said

By contrast, average unemployment in all OECD countries would fall from 8 percent to 7.8 percent by 2014, with the United States also expected to drive its jobless rate below 7 percent, from the current rate of 7.6 percent.

Young and low-skilled lose out

Across the OECD, which comprises 34 advanced and emerging economies, some 48 million people are currently out of jobs – 16 million more than at the beginning of the financial crisis in 2008.

In Europe, young people would continue to be severely hit by the jobs crisis, the OECD report said, with the jobless rates among people under 25 years of age predicted to remain at about 60 percent in Greece, 55 percent in Spain and about 40 percent in Portugal and Italy.

In addition, job losses were concentrated in low-skilled and low-income households, the organization said.

The OECD called on governments not to abandon income support measures and to provide adequate resources devoted to assisting with job hunting and training.

Source: Deutsche Welle |