According to the report "Employment Outlook 2021" by the Organization for Economic Cooperation and Development (OECD), nearly 22 million people in advanced countries have lost their jobs in 2020 due to the coronavirus pandemic. Notably, the report does not cover the rest of the world and concerns only those countries that are part of the organization.
Despite the gradual economic revival, the labor market in developed countries has been recovering much slower. Therefore, the likelihood of economies regaining their previous employment rate even by the end of next year is slim. "Many of the jobs that have been lost during this pandemic crisis will not be recovered," Stephane Carcillo, the head of the OECD’s jobs and income division, said.
The level of unemployment remains high among low-skilled and young workers in comparison with the adult working population. "The scars could be felt for a long time for young people in terms of employment and wages," Stefano Scarpetta added. In addition, the income gap has significantly increased as there has been a shift towards jobs that require technical skills. Unemployment was also rather high in the service sector, especially in the tourism industry and catering. At the same time, the financial sector recorded an increase in employment even at the peak of the pandemic, primarily because employees of banks, funds, and investment companies had the opportunity to work remotely.
Assessing the situation in the world labor market, experts at the OECD have distinguished its several important features over the past year and a half. For instance, people who have lost their job will have to seek much longer for a new one compared to the pre-pandemic time.
Each new wave of the pandemic crushed down more companies and adversely impacted some sectors of the economy, making it extremely difficult for employers to create new jobs. As a result, people lose their professional skills while being unemployed. Therefore, even if suitable vacancies appear, they may not meet the job requirements.
Experts at the OECD highlight that ultimately, they need to do their best so that the economy can adapt to the current situation. This is why they should identify companies with bright and long-term growth prospects.
