Developed countries will lose about 30 million jobs from the end of 2007 through the end of 2010, the Organisation for Economic Cooperation and Development (OECD) said today, underscoring concerns the global economy has yet to recover from its worst recession in at least seven decades.
The job losses were mainly a result of the global financial crisis and the subsequent economic downturn that has pushed most developed economies into recession, said OECD secretary general Angel Gurría.
"The massive unemployment numbers that we have talked [about] are putting a lot of pressure everywhere," Mr Gurría said at a news conference in Brasilia, where the OECD released a report on Brazil's economy.
Labour markets typically lag the recovery in economic output as employers squeeze more production out of workers through longer hours before hiring more people.
Many economists and government officials expect the global economy to begin emerging from recession later this year or early in 2010, while unemployment stays high.
The unemployment rate in the United States rose to 9.5 per cent in June, the highest in 25 years, and White House economists are forecasting it may hit 10 percent in the coming months.
Consumer surveys in the United States and Germany have shown people are likely to postpone purchases of homes, cars and other durable goods as companies continue to streamline their headcount.
German analyst and investor sentiment dropped in July for the first time in nine months, the Mannheim-based ZEW economic think tank said today.
US Commerce Department data today showed retail sales rose more than economists had expected. However, excluding autos and gas stations, the sales results were disappointingly weak, indicating consumers remained wary of stepping up discretionary spending despite some signs the recession may be drawing to a close.
Reuters