The employment crisis is “much more serious” than 2008, according to the OECD

The OECD calls for “urgent action” to avoid “a general social crisis” when unemployment in all countries in this organization could reach 9.4% during the fourth quarter of 2020, a record since the Great Depression.

The OECD sounds the alarm. The job crisis is “much more serious” than 2008, according to the Organization for Economic Cooperation and Development, which requires “urgent action” so that it does not turn into “a general social crisis”.

“In the most optimistic scenario for the pandemic development, unemployment in all OECD countries could reach 9.4% in the fourth quarter of 2020, exceeding all the peaks recorded since the Great Depression,” the OECD expects in its 2020 edition of its “employment prospects” report, published on Tuesday, July 7.

The total number of hours worked collapsed and decreased ten times faster during the first three months of the current crisis than during the first three months of the 2008 crisis.

For France, the OECD predicts an unemployment rate of 12.3% at the end of 2020 and even 13.7% in a second epidemic.

Women and the most vulnerable at risk

People with low incomes are hit hardest. “Women are hit harder than men, many work in the hardest-hit sectors and have a disproportionate share of unsafe jobs. The self-employed and those with temporary or part-time contracts are particularly exposed to loss of employment and income,” the organization said.

When it comes to young people leaving school or university, “they will find it difficult to find work and face a lasting deterioration in their income opportunities,” the organization warns.

To the extent that the prospect of finding a job quickly “will remain poor for many, some countries should extend unemployment benefits,” the OECD suggests.

In the medium term, countries should “fill the structural gaps in the social protection systems highlighted by the crisis. This will include increasing income assistance for all workers, including self-employed workers, part-time workers and other atypical workers.”

With AFP