Unemployment continues to edge lower in the OECD as economies continue to recover from the worst of the COVID-19 pandemic.
Across the OECD, the unemployment rate dipped to 5.97% in August 2021, down from 6.11% in July. This is the first time it fell below 6% since April 2020, when it spiked to 8.81% from 5.55% the previous month as the pandemic shook the world. US unemployment in August stood at 5.20% (from 5.40%), compared with 7.50% in the euro area (from 7.60%) and 2.80% (unchanged) in Japan.
There is an indication that the pace of the reduction in unemployment is slowing compared with previous months, although it is too soon to come to a firm conclusion. Well-trailed supply chain and input price pressures in the global economy also risk weighing down on the overall pace of the economic recovery. Implications for the unemployment rate remain to be seen.
See more: OECD Data indicator - Unemployment rate