Eurozone employment picture bleak, says OECD

Employment office in Spain
Image caption The OECD says the Spanish jobless rate will be 28% by late 2014

Young workers in the eurozone will continue to suffer from high unemployment rates, the Organisation for Economic Co-operation and Development (OECD) has warned.

In its yearly Employment Outlook, it also said many elderly workers face financial pressures and the closure of access to early retirement schemes.

And it said the low-skilled around the world would struggle to find work.

The report highlighted the disparity in jobless levels around the eurozone.

The OECD said the eurozone jobless rate would be 12.3% by late 2014, but that whereas the rate in Germany was set to drop below 5%, in Greece and Spain it would be about 28%.

In France the jobless rate is seen as being just over 11% by the end of 2014, and at 12.5% in Italy.

While unemployment is set to fall in Germany by the end of 2014, it will remain flat or rise in the rest of Europe, the Paris-based body added.

The current jobless rate in the eurozone bloc is 12.2%.

Social strains

In the US, the unemployment rate is predicted to fall from 7.6% in May 2013 to below 7% by the end of next year.

The OECD said that recent signs of employment growth recovering in the US had been offset by continued torpor in the eurozone.

"Across the OECD, more than 48 million persons are unemployed, almost 16 million more than at the start of the crisis," it said in its report, referring to the onset of the global financial crisis six years ago.

The OECD also said that job and earnings losses had been concentrated in low-skilled, low-income households.

Those on insecure, short-term contracts were often the first to be sacked as the economic crisis grew and have since struggled to find a new job.

"Concerns are growing in many countries about the strains that persistently high levels of unemployment are placing on the social fabric," the report said.

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