Unemployment rate in OECD countries reaches 8.6%

| October 12, 2009 | 0 Comments

The Organisation for Economic Co-operation and Development (OECD) has today revealed that the unemployment rate in its member countries has crept up from 8.5% in July to 8.6% in August, up from 6.3% in August 2008.

The OECD, which includes 30 territories such as the US, Australia, Japan, Canada, New Zealand and European countries, is forecasting that the jobless rate could hit 10% next year, despite many countries emerging from recession.

However, there have been signs of recovery in many OECD areas after Germany, France, Germany and Japan all exited recession in the second quarter after experiencing positive growth.

It is hoped many other of its member nations will emerge from recession during the third quarter.

However, many experts have warned that even though economies will start to recover, the number of people losing their jobs would continue to increase.

In the euro area, Spain had the highest unemployment rate at 18.9%, while the second highest was Ireland at 12.5%. Both countries have been hit by a severe slump within the construction industry, which has led to a significant amount of job losses.

The world’s largest economy (the US) has an unemployment rate of 9.6% while Japan (the world’s no.2 economy) has a much lower jobless rate of 5.5%.

Finally, last month, the OECD said the global recession is ending faster than originally thought and expects the US and the euro zone to exit recession in the third quarter.

However, the news was not so positive for the UK with the organisation predicting that the economy will contract by 4.7% this year, revised upwards from its earlier prediction of a 4.3% contraction and far more negative than the 3.5% decline predicted by the UK Treasury.

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