The world economy has experienced an unprecedented decline in recent times due to the COVID-19 pandemic, resulting in a sharp rise in unemployment across the globe. The International Labour Organization (ILO) estimates that as many as 200 million jobs could be lost as a result of the crisis, and the global unemployment rate is set to double from its pre-pandemic level.
However, according to the latest forecast from the Organisation for Economic Co-operation and Development (OECD), the difficult times are not ending anytime soon. In its forecast, OECD predicts that global unemployment rate will continue to rise at least until 2024.
This grim forecast is mainly attributed to the uneven economic recovery across different countries following the pandemic, with some countries recovering faster than others. Despite governments introducing unprecedented stimulus packages in the form of increased fiscal spending and economic relief measures, some markets are yet to witness any signs of recovery.
The Netherlands, for example, has made some progress in containing the pandemic, but still, the unemployment rate remains one of the highest in Europe. This is expected to increase further over the next few years, according to the OECD.
In the United States, on the other hand, the economic recovery has been relatively faster since the pandemic hit. Yet, millions remain unemployed despite strong fiscal stimulus packages provided by the government.
The situation is expected to remain more or less the same over the next few years, with the 2021 U.S. unemployment rate being projected to be slightly lower than that of the previous year.
Though unemployment is expected to rise in the coming years, this does not imply that job growth will remain stagnant. OECD’s forecast indicates that the number of jobs is set to increase in some industries, such as the green economy sector.
Therefore, the governments of the affected countries must come up with comprehensive policies that can support recovery, create jobs and promote job growth. Additionally, investments in education and training are also essential to stimulate the job market and create new opportunities for the unemployed people.
In conclusion, it is very clear from the OECD’s forecast that global unemployment is set to remain stubbornly high in the coming years. This implies that there is a need for proactive intervention to help curb this problem and stimulate job growth. Governments should focus on creating jobs in the green economy, as well as invest in education and training opportunities to equip the unemployed with the skills necessary to re-enter the job market.
