The recovery of jobs in the developed world in the wake of the Great Recession has “only just begun” in some countries, but not in the eurozone.
Unemployment is “finally on a downward path”, but the rate remains high in the euro area, according to the Organisation for Economic Cooperation and Development.
"The employment situation has started to improve, but there is still a long way to go to make up for the job losses that occurred as a result of the global financial crisis," the OECD said in its annual employment outlook.
The report highlighted the plight of the euro area where the employment rate is about “its lowest level since the start of the crisis.” “The jobs recovery has yet to begin”, it concluded, “because economic recovery has remained too weak to generate a significant improvement”.
It also warned that only 7 out of its 34 developed nations had more people in employment now than before 2007.
The think tank estimated that the impact of the Great Recession will be felt for years to come, while employment would improve gradually amid “modest improvements in the euro area”.
The OECD data showed 50% of all workers suffered some form of pay reduction because of the crisis. UK wages experienced some of the biggest declines, but the drops were greater in Portugal, Greece, and Spain.
By contrast Finland saw the fewest wage cuts, followed by workers in the Netherlands.
The OECD called for countries to press ahead with structural reforms while protecting those on low pay.
"A range of policies are needed to promote competitiveness, growth and job creation. In addition to sound macroeconomic policies to promote the recovery, these include: reforms to increase competition in the markets for goods and services; helping displaced workers shift to new areas of employment; and shoring up incomes of low-paid workers."
