Rich World’s Unemployment Is Back!

Italy Populists Agree To Form Coalition Government

The world’s developed economies have got a new stage of unemployment – its level is back down to before financial crisis. According to data from OECD unemployment level fell 5.6pc in October across the 35 countries, while in 2010 its peak was 8.5pc.

The eurozone overall still suffers a jobless rate of 8.8pc, below its 12.1pc peak in 2013 but above its 2008 level of 7.4pc. In the countries with very low jobless rate it is expected that pay growth will start in near future.

Italy Populists Agree To Form Coalition Government

Peter Dixon, Head Economist at Commerzbank states “It certainly appears that there have been structural shifts in the labour market across the industrialised world with the result that wages are less responsive for any given rate of unemployment.

  • Economists forecast that on a longer-term perspective labour force participation has a strong potential and will be beneficial for world’s economy.
  • The gap in employment rates between America’s highest- and lowest-income families has stretched to its widest levels since officials began tracking the data a decade ago, according to an analysis of government data conducted for The Associated Press.

U.S. households with income of more than $150,000 a year have an unemployment rate of 3.2 percent, a level traditionally defined as full employment. At the same time, middle-income workers are increasingly pushed into lower-wage jobs. Many of them in turn are displacing lower-skilled, low-income workers, who become unemployed or are forced to work fewer hours, the analysis shows.

“It certainly appears that there have been structural shifts in the labour market across the industrialised world with the result that wages are less responsive for any given rate of unemployment.”

— Adam smith

Many of them in turn are displacing lower-skilled, low-income workers, who become unemployed or are forced to work fewer hours, the analysis shows.

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