The OECD suggests that unemployment rate could take years to normalize.
This from Researchrecap,
``More evidence of the seriousness of the unemployment problem can be found in the OECD’s Employment Outlook 2009. The OECD compares the the trajectory of the current rise in unemployment with that seen in the 1973 recession. In that case, the unemployment rate flattened out approximately two years after the start of the recession. If the current recession followed the same pattern, it would be topping out around now. However, the OECD’s projection suggests the rate will continue to rise until the end of the third year before starting to level out. That would be toward the end of 2010, when the rate is projected at around 10%, or 57 million people in the OECD countries.
This from Researchrecap,``More evidence of the seriousness of the unemployment problem can be found in the OECD’s Employment Outlook 2009. The OECD compares the the trajectory of the current rise in unemployment with that seen in the 1973 recession. In that case, the unemployment rate flattened out approximately two years after the start of the recession. If the current recession followed the same pattern, it would be topping out around now. However, the OECD’s projection suggests the rate will continue to rise until the end of the third year before starting to level out. That would be toward the end of 2010, when the rate is projected at around 10%, or 57 million people in the OECD countries.
``The risk is that much of this large hike in unemployment becomes structural in nature as many of the unemployed drift into long- term unemployment or drop out of the labour force."
Read the rest here
My comment: serial bubble blowing policies ensures that unemployment rates will remain high.
