Think tank concerned for unemployment in rich economies

| July 7, 2010 | 0 Comments

Economic think tank, the Organisation for Economic Co-operation and Development (OECD), has today said unemployment remains a concern in rich economies.

In particular, the OECD has expressed concern for the UK economy, after the Government axed investment for job programmes. It believes the unemployment rate will hover around the 8% mark for at least the next 18 months.

While the OECD said it supported the new UK Government’s proposals to reform the benefit system so that work was more attractive, it said: “the large fiscal deficit makes it essential to focus on cost-effective programmes and target the most disadvantaged groups, so labour market programmes should remain adequately funded.”

The Organisation said jobs need to be created in order to return to pre-crisis employment levels.

“Governments should place a high priority on trying to encourage employers to step up hiring,” it said.

Of the 17 million jobs that have been lost during the economic downturn, 10 million were axed in the US, according to the group of 31 developed nations.

Spain has the highest rate of unemployment in the OECD area at almost 20%, where 2.5 million jobs have been axed.

The housing market collapse has had a major impact on Spain’s construction industry with thousands of job losses the country’s unemployment rate is double that of the euro zone.

There are currently 47 million people unemployed among its member countries, said the OECD.

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