OECD projects the employment rate to fall by 4.1% this year
July 18, 2020
Global Korean Post
The COVID-19 pandemic has triggered a deep economic crisis not seen since the Great Depression.
With respect to the fourth quarter of 2019, OECD-wide GDP is projected to have fallen by almost 15% by the second quarter of 2020.
The OECD-wide unemployment rate rose from 5.2% in February to 8.4% in May.
In those countries for which data are available, during the first three months of the cri sis, total worked hours have collapsed on average 10 times more than in the same period of the global financial crisis.
The OECD projections are based on two scenarios (with and without a second pandemic wave later in 2020). In the absence of a second wave, OECD-wide employment is projected to fall by 4.1% in 2020 and grow by only 1.6% in 2021.
Consequently, the OECD unemployment rate is projected to reach record highs of up to 9.4% by the end of 2020 (Q4) and only fall back to 7.7% in 2021. In the case of a second wave, the crisis would be worse and more protracted.