OECD unemployment falls

Strengthening of economic indicator slows

Unemployment in developed countries remains above pre-COVID 19 levels, but in Organisation for Economic Co-operation and Development countries, jobless rates fell on average to 7.7% in July, down from 8% in June.

While the euro area saw the fourth consecutive monthly increase in July to 7.9%, Japan’s unemployment rate nudged up only marginally to 2.9% from 2.8% in June, a mere 0.5 percentage points higher than in February.

Meanwhile, Canada and the US saw a marked decline by 1.4 percentage points to 10.9% and by 0.9 percentage points to 10.2%, respectively, following a continued drop in people on temporary layoff.

Unemployment in North America remains significantly higher than in February – 5.3 percentage points in Canada and 6.7 percentage points in the United States.

However, OECD data until mid-August points to continued falls in temporary layoffs, and a further unemployment decline to 10.2% in Canada and 8.4% in the US.

The job-market improvement comes as the OECD composite leading indicator (CLI) for August continued to strengthen from the COVID-19 lows. But the Paris-based organisation warned that the pace of recovery has slowed and is below levels recorded before the pandemic.

This moderation, the OECD said, occurred in all major developed and emerging economies, except China, where the rate of expansion of the CLI for manufacturing remains stable, as well as in Brazil where the CLI continues to strengthen.

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