THE LONG spells many Americans are spending without work risk leaving a lasting scar of higher unemployment on the US economy, the OECD warned yesterday.
In its biennial report on the US economy, the OECD said the unemployment rate which the economy could sustain without generating inflation was 6.1 per cent, up from 5.7 per cent in 2007. In May, the rate stood at 8.2 per cent.
It left its 2012 growth forecast of 2.4 per cent intact, but the OECD called on the US to prepare for the “fiscal cliff” at the end of the year, when numerous spending cuts are due to kick in.
City A.M. Reporter