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OECD sees no end to jobs crisis

Tuesday, July 10, 2012 - 01:45

July 10 - Unemployment in advanced economies will remain high until at least the end of 2013, with young people and the low-skilled bearing the brunt of what is by far the weakest economic recovery in the past four decades, the OECD said on Tuesday. Hayley Platt reports

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Queues at Spanish job centres aren't unusual but they could become more familiar in the rest of Europe too. A new report by the OECD shows unemployment is set to stay high in almost all of its member economies and the young and low-skilled will bear the brunt. Angel Gurria is the OECD's Secretary-General. (SOUNDBITE) (English) OECD SECRETARY-GENERAL, ANGEL GURRIA, SAYING: "In the euro zone, the unemployment is about 11.1 percent. It's the highest it has ever been and the problem is that youth unemployment is about double that. There are countries that have 30 percent, 40 percent, even 50 percent youth unemployment." The average rate of unemployment across the OECD's 34 countries was 7.9 percent in May. The organisation predicts a slight fall to 7.7 percent by the end of the year - but that will still leave some 48 million people out of work. Gurria says governments must tackle the job crisis head on. (SOUNDBITE) (English) OECD SECRETARY-GENERAL, ANGEL GURRIA, SAYING: "Public policies should focus on the question of reducing unemployment and allocate resources even in very tight budgets in order to continue to fight these questions." The percentage of long term unemployed has risen from 27 to 35 percent. And the trend towards temporary employment is also increasing. Advances in new technology are partly to blame. But the OECD says governments can help themselves. Opening up retail trade and professional services to greater competition would be one way forward. Hayley Platt, Reuters.

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OECD sees no end to jobs crisis

Tuesday, July 10, 2012 - 01:45