Jobless rate in industrialised countries to remain high through 2014

The average unemployment rate in the industrialised nations will remain high at 7.8 percent until the end of 2014, compared with 8.0 percent in May of this year, the Organisation for Economic Cooperation and Development (OECD) said on Tuesday. The OECD, which groups 34 of the world's most developed nations, said that around 48 million people in the industrialised area would be out of work at the end of next year. At the same time, the report here underlines "wide disparities" between member countries, with the best-performing cutting their jobless rate noticeably, while others in more difficult economic situations seeing their rates climb even higher over the next 18 months. US unemployment, a crucial barometer, is expected to fall to 7.0 percent at the end of next year from 7.6 percent currently. Germany, Europe's industrial and economic powerhouse, will decrease its jobless rate to 5.0 percent from 5. 3 percent over the same period. "But in the rest of Europe, joblessness will remain flat or even rise in many countries," the OECD said. By December 2014, joblessness is expected to be just over 11 percent in France, up from 10.4 percent now, and unemployment should rise to 12.5 percent in Italy and close to 28 percent in Spain and Greece, currently hovering at around 26 percent. Considering these are average rates and that youth unemployment is often more than double the national rate, the impact of the economic crisis on Europe's young people is devastating in several countries. Youth unemployment in Greece currently stands at 60 percent and 55 percent in Spain and even 40 percent in Italy. "The social scars of the crisis are far from being healed," said OECD Secretary-General Angel Gurria on publication of the report Tuesday. "Many of our countries continue to struggle with high and persistent unemployment, particularly among youth. Therefore, the recent commitment by OECD ministers to do more to help youth, as set out in the OECD Action Plan for Youth, is an essential tool in our fight against the scourge of joblessness," he added.