The painful death of developed world jobs

The OECD's Employment Outlook 2013 is grim, indicating that over half of joblessness is now long-term: one year or longer, and that young people and low-skilled workers will continue to be hit hardest.

"Job loss and a lack of job opportunities have been concentrated among low-paid workers, more than offsetting declines in earnings of high-paid workers, which were often only temporary. Consequently, inequality in the incomes of households rose more in the period 2007 to 2010 than in the previous 12 years in most (OECD) countries."

Another serious concern is that persistently high levels of unemployment are placing strains on the social fabric, a sad reality that has become increasingly clear throughout the developed word since the onset of the global financial crisis in 2007-2008.

But the greatest obstacle to reduced unemployment across the OECD is the sickly labour markets of the euro area, whose abysmal performance over the past five years has opened the door for extreme political movements.

Portugal's jobless rate "has more than doubled from a pre-crisis average (for the years 2005-08) of 7.7% to a a projected 18.6% in 2014." In Greece and Spain, the numbers are even more disheartening.

"The jobless rate for Greece has risen from a pre-crisis average of 8.7% to a forecast 28.4% next year. That of Spain has jumped from 9.3% to 28.0%."

 

To read the Employment Outlook in full, click here.