Unemployment in OECD member countries is expected to approach 10 per cent next year, according to a new forecast.
The Organisation for Economic Co-operation and Development (OECD), which comprises 30 countries including Ireland, estimates that there will be 57 million unemployed in member countries by the end of next year, up from 37.2 million at the end of 2008, when the average unemployment rate stood at 6.8 per cent.
The expected increase will bring OECD-wide unemployment to 9.9 per cent by the end of 2010, its highest level since the 1970s. During the last quarter of 2007, the unemployment rate in OECD countries stood at 5.5 per cent with 31.6 million people without jobs.
“Unemployment will continue to weigh on national economies for a long time to come,” said OECD secretary-general Angel Gurría today.
“Previous downturns have taught us that the jobs recovery will lag a long way behind the pickup in economic growth. The OECD is working closely with countries to adapt their policies in order to better help the unemployed and avoid high unemployment levels becoming persistent", he added.
The OECD says that pending a recovery in labour markets, governments should make efforts to help the most vulnerable by ensuring that financial safety nets are adequate for low-income families and the unemployed. It also said that member countries should make tackling rising youth unemployment a key priority.
The organisation also urges countries to make greater efforts to provide training opportunities for the unemployed to help people enhance their skills.
