According to the OECD''s Employment Outlook 2010 report, OECD countries need to create 17 million jobs to get employment levels back to where they were before the crisis. Unemployment may have peaked in the OECD area, having reached 8.6% in May 2010.
Mr Angel Gurría secretary general at OECD, launching the report in Paris, said that "Creating jobs has to be a top priority for governments. Cutting unemployment and fiscal deficits at the same time is a daunting challenge but it needs to be tackled head on. Despite signs of recovery in most countries, the risk remains that millions of people may lose touch with the labor market. High joblessness as the new normal can not be accepted and has to be tackled by a comprehensive policy strategy."
The report said that "Today''s jobs gap varies widely between countries: in the United States nearly 10 million jobs need to be created. In Ireland, 318 000 jobs are needed to return to pre crisis levels, that is one job for every 5 existing jobs today. Spain has lost 2.5 million jobs since the end of 2007. Altogether, there are 47 million unemployed in the OECD area today. But taking into account people who have given up looking for work or are working part time but want to work full time, the actual number of unemployed and under employed in OECD countries could be about 80 million."
According to the OECD, the challenge for governments is to define a new balance between fiscal consolidation while at the same time helping the people most in need, notably young people and the long term unemployed. Maintaining effective support for these people is vital and governments must resist the temptation to cut benefits or reduce funds for re-employment services to save money in the short term.
The report argues that "A strong case can be made to ensure that labor market policies remain adequately funded. But it becomes essential to focus on cost effective programs and to target the most disadvantaged groups at risk of losing contact with the labor market."
The report said that "Emerging economies should as far as possible reinforce their safety nets. They should provide cash transfers and public work schemes for the most vulnerable families and help people who lose their jobs in the formal sector who are at risk of falling into poverty and informal employment."