Unemployment to peak in 2010: OECD
Last Updated: Wednesday, September 16, 2009 | 11:30 AM ET
CBC News
Related
External Links
(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window)
The world's leading industrialized nations are likely going to set a record for postwar unemployment in 2010, according to a forecast by the Organization for Economic Co-operation and Development.
Despite early signs of economic recovery, in most countries unemployment will rise further next year and remain high for the immediate future, according to the OECD's 2009 Employment Outlook, which was released on Wednesday.
The jobless rate will approach 10 per cent, or 57 million unemployed people, in the latter half of 2010, as the global economy looks set for only a timid recovery, the OECD said.
That compares to the current postwar high of 8.3 per cent in its 30 members countries, as of last June.
'Bottom line' of crisis
"Employment is the bottom line of the current crisis," OECD Secretary General Angel Gurria said.
The OECD said nearly 15 million people have joined the ranks of the jobless since the end of 2007.
The Paris-based watchdog calls the short-term jobs outlook "grim," adding that labour market conditions appear set to deteriorate further in the coming months.
It also says there is a risk the rise in joblessness could result in a permanently higher unemployment level that could take many years to bring down.
OECD report is pessimistic about Canadian labour markets over the next few years, noting that even if the jobless rate has peaked at 8.7 per cent, "Canada's labour market typically takes a long time to recover from recessions."
The organization points out that Canada's unemployment rate hit a recessionary high in 1993, but that it took almost eight years after that before the rate returned to pre-recession levels.
"Previous downturns have taught us that the jobs recovery will lag a long way behind the pickup in economic growth," Gurria said.
Youth hardest hit
Under the scenario laid out in the report, the number of unemployed in the OECD will rise by more than 25 million people in less than three years, comparable to the job losses over the 10-year period until the early 1980s.
Governments must act fast and decisively to prevent the recession turning into a long-term unemployment crisis, Gurria said. "It is essential that governments focus on helping job seekers in the months to come."
Young people will be hardest hit by the crisis and industrialized countries risk having a "lost generation" of youth who fall into long-term unemployment that causes them to lose touch with the job market, the report said.
The organization urges governments to spend more on active labour market policies, such as job-seeker support, training and labour-demand support, that help the unemployed find work.
A co-ordinated policy response that takes poverty and the developing world into consideration is the best approach to combating unemployment, according to the OECD.
With files from The Associated Press and The Canadian PressShare Tools
Top News Headlines
- Botox injected by unlicensed practitioners
- Some Vancouver-area medical spas are ignoring Health Canada regulations that Botox be prescribed and injected by a physician, a CBC News investigation has revealed. more »
- Legalize pot, say former B.C. attorneys general
- Four former B.C. attorneys general are joining a coalition of health and justice experts calling for the legalization of marijuana. more »
- 6 ways Greece can bounce back
- Although Greece's economic future seems dire, a number of the country's sectors show promise, according to observers. more »
- Are you a good Canadian citizen? Compare yourself
- Waving the Canadian flag is an easy act of patriotism. But beyond that what are hallmarks of being Canadian? more »
Latest Business Headlines
- 6 ways Greece can bounce back
- Although Greece's economic future seems dire, a number of the country's sectors show promise, according to observers. more »
- Air Canada confident it can reach deal with pilots
- Travellers flying Air Canada can keep booking their flights as negotiations continue with a new federally appointed mediator to help resolve an ongoing contract dispute between the airline and its pilots. more »
- CPP invests $1.8B in U.S. malls
- The Canada Pension Plan Investment Board is making a whopping $1.8-billion investment in shopping malls in the U.S. with a new joint venture agreement with the Westfield Group in its biggest real estate deal to date. more »
- Nortel hit by suspected Chinese cyberattacks for a decade
- Hackers based in China enjoyed widespread access to Nortel's computer network for nearly a decade, according to a report. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12354.47 | 0 |
| DOW | 12878.28 | 0 |
| NASDAQ | 2931.83 | 0 |
| SP 500 | 1350.5 | 0 |
| NYSE COMPOSITE | 8029.61 | 0 |
| AMEX | 2429.06 | 0 |
| TSX-VENTURE | 1630.03 | 0 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Legalize pot, say former B.C. attorneys general
- Botox injected by unlicensed practitioners
- Trudeau says sovereignty less of a bogeyman now
- Toronto NBA fans experience 'Lin-sanity'
- Immigrants the proudest Canadians, poll suggests
- Homicide follows Vancouver family argument
- Tires slashed on more than 100 cars in Surrey
- Online privacy erosion dismays critics
- Barefoot Newfoundland girl survives icy ordeal

