Jobless figures to remain high for 18 months warns global body

By ALAN JONES
Published on 11/07/2012 00:00

Unemployment rates in developed countries, including the UK, will remain high until at least the end of 2013 because of the weak economic recovery, according to a report yesterday.

The jobless rate in the 34-country Organisation for Economic Co-operation and Development (OECD) area will stay at 7.7 per cent at the end of next year, close to May’s rate of 7.9 per cent, the Paris-based organisation said in its 2012 “employment outlook”.

Some 48 million people will still be out of work next year across the countries, the respected group warned.

Young people and those with low skills will bear the brunt of the jobs “crisis”, with work created in the past two years often concentrated in temporary contracts because firms are reluctant to hire workers, the report noted.

Angel Gurria, secretary-general of the OECD, said: “The recent deterioration in the economic outlook is very bad news for the labour market.

“It is imperative that governments use every possible means to help jobseekers, especially young people, by removing barriers to job creation and investing in their education and skills.

“The young are at most risk of long-term damage. Targeting the most cost-effective policies is essential.”

The report added that unemployment varied widely between countries, standing at more than 24 per cent in Spain, double figures in France, Greece, Ireland and Italy and 8.25 per cent in the US. Latest figures for the UK showed an unemployment rate of 8.2 per cent, with a jobless total of 2.6 million.