Thursday, July 9, 2015

OECD warns of entrenchment of youth unemployment and long … – Metro

The OECD today launched the alert still high rates of unemployment in many of its countries are reabsorbed very slowly despite the recovery, particularly with long-term unemployment that encysts and insecurity that feeds on youth and threatens to affect his career.

This is one of the main messages of the Employment Outlook report released today by the Organization for Economic Cooperation and Development (OECD) estimated that the unemployment rate will rise from 7.1% the fourth quarter of 2014 (1.6 points more than at the beginning of the crisis) to 6.5% at the end of 2016.

Around 42 million workers were out of work in its 34 member countries last May, which means 10 more than before the crisis erupted million.

The situation was very proven, and that while in the euro zone remained above 11% (and over 20% in Greece and Spain) in the United States had positioned below Batten below 6% and 4% in Japan, South Korea and Norway.

The study authors noted that a third of the unemployed (15.7 million total) for over a year in that situation-57% of which over two years, and this group, where people with low skills predominate, has risen 77.2% since the end of 2007.

That is a risk of departure from the labor market long-term reintegration difficult .

He also stressed that young people are among the hardest hit by the rise in unemployment since 2007, particularly in countries like Greece, Italy and Spain, which have risen very sharply which neither have jobs nor are forming.

In this regard, they explained that one of the findings of their study is that “the prospects for long-term career development are decided, largely in the first ten years of active life”.

The report also found that experienced workers who have lost their jobs during the crisis will be difficult to revive his career, especially since they will have to spend some declining sectors (such as construction or manufacturing) to more dynamic, in particular services.

The OECD also warned that inequalities have increased even more with the crisis in most of their countries.

The differences in socio-professional skills largely explain the variation in wage inequality, which in turn are a determining factor in the gap of the family income.

In the long term, low cognitive skills, atypical employment and less productive companies are the main determinants of low wages factors.

In response, known as “Club of developed countries” it recognized that a minimum wage reduces the risk of extremely low pay, although he pointed out that we must take into account the possible negative effect on employment .

The OECD, which decided to set a lower minimum wage for young workers without much experience -to facilitate their entry into the world of work, also advised its regular review with “objective assessments of their potential impact on low-skilled jobs and living conditions. ”

And above all, instead of a decision by a general ideal level, insisted that should be coordinated with other elements of social policy such as the social security contributions-for example, lower them for little jobs or complete cualificados- with other benefits.

The organization advised three types of measures to improve the prospects of workers who are at the lower end of the scale, starting with effective activation devices to connect the unemployed with jobs that fit their profiles.

The others are completing the skills of workers with low skills and direct measures to strengthen the quality of jobs by supporting the salaries of low-paid workers.

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