Spain’s jobless rate will continue to rise to include more than a quarter of the workforce before it peaks early next year, the Organization for Economic Cooperation and Development said.
The unemployment rate will climb to 25.4 percent in the first quarter of 2013 from 24.6 percent in May, the Paris-based OECD said today in a report. Joblessness will begin to decline in the second half of next year as the economy starts to recover, it said.
The OECD urged its 34 member states to do more to combat unemployment in the face of a slowing world economy and recessions in European countries including Spain and Italy. The jobless rate in the euro area reached 11.1 percent in May and will probably stay there until the end of 2013, the OECD said.
“The recent deterioration in the economic outlook is very bad news for the labor market,” OECD Secretary-General Angel Gurria said in a statement. “It is imperative that governments use every possible means at their disposal to help job seekers, especially young people, by removing barriers to job creation and investing in their education and skills.”
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