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OECD sees double digit unemployment, 4.2% contraction this year

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The Organization for Economic Cooperation and Development (OECD) issued a background paper to the G8 labor and unemployment ministers. Here are some projections for world economies:

  • Growth in the 30 nations bloc will contract by 4.2% this year, down sharply from its earlier projection of 0.4%.
  • Joblessness in the OECD areas would increase in the three years to 2010.
  • These projections are based on the assumption that tensions in the financial markets will dissipate by the end of 2009

In a separate paper issued to the Rome G8 summit, the International Labour Organization projected the global unemployment could rise by 50 million this year, up from 11 million in 2008.

John Evans, leader of the trade unions in the OECD said the he wants workers' organizations represented at the London G-20 summit meeting.

The OECD is funded by the U.S., Japan and 28 other rich industrialized nations. The narrower G8 is made up of the US, Japan, Germany, Britain, France, Italy, Canada and Russia.

These projections of OECD nations' growth contracting by 4.2% and an an additional 50 million people unemployed this year seem quite startling. Do you believe that we will come out of this recession this year?

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Last updated: November 27, 2009: 03:34 AM

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