NPR logo O.E.C.D. Warns Recession Could Cost 25 Million Jobs

O.E.C.D. Warns Recession Could Cost 25 Million Jobs

The international group, Organization for Economic Cooperation and Development, warns that the unemployment rate for its 30 member nations could reach a high of 10 percent by 2010. The unemployment rate across the countries in the O.E.C.D. was 8.5 percent for July.

From the New York Times:

Government spending programs on the labor market — re-training programs, for example — do not appear focused enough to bring the unemployment rate down soon, the report said.

"A major risk is that much of this large hike in unemployment becomes structural in nature as many of the unemployed drift into long-term joblessness or drop out of the labor force," said John P. Martin, director at the O.E.C.D. for employment.

That occurred in a number of O.E.C.D. countries during past recessions, "when unemployment remained at a new higher plateau compared with the pre-crisis level even after output returned to potential and it took many years, if ever, to bring it down again to the pre-crisis level."

The report recommends governments focus a significant amount of attention on young people to avoid the risk of a generation of people "losing touch with the job market."