OECD employment rate climbs to 67.4% in second quarter

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Employment in Organization for Economic Co-operation and Development countries increased slightly in Q2 2021 as economies entered recovery mode after the Covid-19 pandemic

The overall employment rate among the 38 group members reached 67.4 percent in the three months to September 30, down from 66.8 percent in the previous quarter.

“Increases have been reported in more than four-fifths of OECD countries,” the Paris-based organization said Thursday in a statement.

The OECD group includes several euro area countries, as well as the United States, Japan and the United Kingdom.

Hiring has accelerated in major economies as the rate of Covid-19 infections slows and movement restrictions ease, leading to increased economic activity.

In Britain, a number of big brands have embarked on a hiring wave, with UK vacancies reaching a record 1.2 million in September amid chronic labor shortages. work, according to the Office for National Statistics.

Employment reached 75.1% in the second quarter, according to the OECD, while the ONS found that unemployment fell to 4.5% in the three months to August, from its pandemic peak of 5, 2% at the end of last year.

Earlier this month, the International Monetary Fund downgraded global economic growth for 2021 to 5.9% from its July estimate of 6% due to the Covid-19 outbreaks, access unequal to vaccines, supply chain disruptions and risks of rising inflation.

In the euro area, the employment rate rose to 67.6 percent in the second quarter of the year, according to the OECD, slightly lower than 68.9 percent in the United States and 72.4 percent in the Canada.

A great disparity was observed within the European economic bloc, with an employment rate ranging from a maximum of 79.3 per cent in Iceland to 56.4 per cent in Greece.

While the quarterly increase in employment in the OECD “suggests an overall recovery towards pre-pandemic rates,” the organization said one had to be careful in interpreting the data.

The EU has changed its methodology in its Labor Force Survey, while a large part of the increases seen in the third and fourth quarters of 2020 in the United States and Canada reflect the return to work of workers on leave.

A sharp increase in the employment rate was also observed in Mexico, while Australia and Japan registered small increases.

However, this figure has declined in Costa Rica and Colombia.

Update: October 21, 2021 11:25 a.m.


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