- OECD raises red flag on US long-term unemployment, By Lucia Mutikani, June 26, 2012, Reuters: “The lengthy spells many Americans are spending without work risk leaving a lasting scar of higher unemployment on the U.S. economy and training programs are needed to avert the damage, the OECD said on Tuesday. The warning from the Organization for Economic Cooperation and Development comes against the backdrop of stalled U.S. jobs growth and an uptick in the unemployment rate in May. In a report on the U.S. economy, the Paris-based OECD estimated the unemployment rate which the economy could sustain without generating inflation at 6. 1 percent, up from 5.7 percent in 2007. In May, the rate stood at 8.2 percent. “However, structural unemployment may well already have risen more than this estimate would suggest, and there is a risk that it could increase still further, given the still high levels of long-term unemployment,” the OECD said. Before the 2007-2009 recession, many economists believed the so-called natural or structural rate of unemployment was around 5 percent. . .”
- OECD Sees U.S. Economic Growth, Stark Challenges, By Michael R. Crittenden, June 26, 2012, NASDAQ: “The U.S economic recovery may be gaining momentum, but the country faces stagnant wage growth, high comparative levels of poverty and income inequality and an educational system that provides few resources to those more likely to need help, the Organization for Economic Cooperation and Development said in a new report. The OECD’s 2012 economic survey of the U.S. found that the U.S. economy has made some gains and is expected to grow moderately this year and next. A further deterioration of the European crisis or the potential for U.S. policymakers to allow for immediate sharp cuts in government spending could jeopardize the outlook, the report said. . .”
Poverty-related issues in the news, from the Institute for Research on Poverty