Global employment outlook ‘now highly uncertain’: OECD

Lower global growth means employment growth also likely to slow, says global body

The global employment outlook is now highly uncertain due to the Russia-Ukraine war that has caused lower global growth and higher inflation, said a new report by the Organization for Economic Co-operation and Development.

“While labour markets remain tight in most OECD countries, lower global growth means employment growth is also likely to slow, while major hikes in energy and commodity prices are generating a cost of living crisis,”the global body said in its Employment Outlook 2022 report.

The OECD unemployment rate remained at 4.9% in July 2022, 0.4 point below its pre-pandemic level recorded in February 2020 and at its lowest level since the start of the series in 2001.

The number of unemployed workers in the OECD continued to diminish in July and reached 33.0 million, 2.4 million less than before the pandemic.

“Rising food and energy prices are taking a heavy toll, in particular on low income households,” OECD Secretary-General Mathias Cormann said.

“Despite widespread labour shortages, real wages growth is not keeping pace with the current high rates of inflation. In this context, governments should consider well targeted, means-tested and temporary support measures,” he added.


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