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OECD warns COVID-19 will hurt employment until end of '21

PARIS, July 7 (KUNA) -- Due to the impact of coronavirus, low employment levels and high unemployment are likely to remain with the world economies until the end of 2021 despite some signs of a stabilisation of jobless levels, the Organisation for Economic Cooperation and Development (OECD) said Tuesday.
In its latest "Employment Outlook 2020," the economic policy body warned that the current downturn for jobs and a surge in overall unemployment levels are more serious than the impact felt on job markets in 2009 after the financial crisis a year earlier.
"The Covid-19 pandemic is turning into a jobs crisis far worse than the 2008 crisis. Women, young people and workers on low incomes are being hit hardest," the Outlook said.
Unemployment in the OECD area, which groups 35 of the most industrialised nations across the globe, eased slightly to 8.4 percent in May, but this came after a 3.0 percent increase in joblessness in April, when the OECD rate rose to 8.5 percent.
In May, there were an estimated 54.5 million workers out of jobs in the OECD area and the minor improvement that month was partially due to a resumption of work in the US, where the lockdown was, perhaps prematurely, eased in many areas.
On the other hand, the report said, "unemployment is increasing or risks becoming entrenched in many other countries." The Paris-based body noted the "unprecedented" scale and scope of government support for the jobs sector during the lockdown period and urged continued, short-term intervention to particularly help sectors that are still affected by lockdown measures. Such support is "vital" for protecting the most vulnerable, lower-paid workers and women.
"Businesses, especially small ones, will need support to implement health and safety practices in the workplace," the report remarked.
"As prospects of quickly finding new work will remain poor for many, some countries should extend unemployment benefit durations to prevent jobseekers from sliding too quickly into much less generous minimum income benefits," it added.
The OECD also urged "emergency support" for self-employed who do not normally benefit for unemployment benefits.
For the medium term, the Outlook recommended structural changes to modify social protection rules and to improve income support for all workers, including self-employed, part-time and other casual workers, in addition to improving training and social dialogue in the workplace. (end) jk.hb