Eurozone crisis drives up OECD unemployment

Ben Southwood
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UNEMPLOYMENT edged up across the Organisation for Economic Co-operation and Development (OECD) group of developed economies, as the effects of the Eurozone crisis drag on, it said yesterday.

Joblessness across countries in the group rose from an average of eight per cent in December to 8.1 per cent in January, the OECD said, as both the Eurozone and the US saw the fraction without work creep up.

But Item’s Andrew Goodwin remained optimistic about the prospects for the global economy.

“The global outlook has improved, particularly compared to a few months ago – as the likelihood of a particularly bad outcome in the US, or a Eurozone breakup – has ebbed away,” Goodwin said.

“But the labour market tends to react with a lag.”

Unemployment for younger workers – those aged 15 to 24 – rose 0.2 percentage points, from 16.5 per cent to 16.7 per cent in January, the OECD said. By contrast, those over 25 faced an unemployment rate of 6.9 per cent in the first month of 2013, up only 0.1 percentage point.