OECD forecasts unemployment rate to remain high through 2014

High unemployment rate will leave more than 48 million people out of work in the 34 OECD countries through the end of 2014, said the Organization for Economic Co-operation and Development (OECD) Tuesday in its latest outlook report.The annual OECD's Employment Outlook shows that in the OECD area, "jobless rates will fall only slightly over the next 18 months, from 8 percent in May 2013 to 7.8 percent at the end of 2014,knives supplier" which is only half a percentage point down from its peak level reached in 2009, with young people and the low-skilled hit hardest.The new data indicates that the number of jobseekers by the end of 2014 will be "almost 16 million more than at the start of the crisis" which began in 2007.The debt-riddled eurozone risks mostly to have the highest jobless rate as OECD projections point to further increases in unemployment in the 17-member area with the rate to hit a new record at 12.3 percent in the upcoming 18 months.However, the report reveals widening disparities between countries.Unemployment rate is expected to rise up to 11.prepreg2 percent in France, around 12.tyre equipments5 percent in Italy, and to 27. 8 percent in Spain, with Greece at the top by 28.2 percent to the end of 2014.It is projected to fall to 6.7 percent in the United States, and 4.7 percent in Germany during the same period.Since 2007 when the global financial crisis started, aggregate demand has remained weak, resulting in a considerable slack in product and labour markets which meant that in many countries there is still a large cyclical shortfall in employment as measured by the jobs gap."The social scars of the crisis are far from being healed," said OECD Secretary-General Angel Gurria at the launch of the outlook in Paris.

"Many of our countries continue to struggle with high and persistent unemployment, particularly among youth," said the head of the OECD, as the report finds that people on insecure, short-term contracts, especially youth and the low-skilled, were often the first to lost their jobs when the crisis comes.In the outlook, the OECD forecast the jobless for the youth will hit record, "with rates exceeding 60 percent in Greece, 52 percent in South Africa, 55 percent in Spain and around 40 percent in Italy and Portugal."In contrast, job rate for older workers change modestly."Bringing back early retirement schemes or relaxing rules for disability or unemployment benefits for older workers would be a costly mistake," says the OECD.The Paris-based economic think tank advised policy makers in the OECD countries to do more to help youth "fight against the scourge of joblessness."It urges governments to combine macroeconomic policies and structural reforms to strengthen growth and boost job creation,adhesive film to promote a more inclusive labour market and a better allocation of resources leading to enhanced productivity performance.It added that adequate resources must be devoted to active labour market policies, such as help with job hunting and training,cc composite and ensuring that these are sufficiently funded."Spending per jobseeker has fallen sharply since the crisis, by almost 20 percent on average in the OECD, as pressures on public budgets have risen," the OECD said.