The organisation for Economic Cooperation and Development (OECD) predicts that unemployment in industrialized countries will hit the highest level since World War II.
They expect a 10% unemployment rate for the 30 OECD countries globally in the second half of 2010.
What’s shocking is that their prediction implies that while the increase in unemployment may be slowing, we could have another full year before unemployment peaks and starts reversing, for developed nations.
The organisation then fears that this new high for unemloyment could take years to work back down.
OECD: 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 unemployment or drop out of the labour force. This unwelcome phenomenon occurred in a number of OECD countries in 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.
Check out this informative summary video released alongside the report: