Employment in advanced economies is slowly improving, but wages remain low, the Organization for Economic Cooperation and Development (OECD) said Thursday.
In its employment outlook, the Paris-based think tank said that the jobs gap created by the financial crisis of 2008 will close by 2017 across OECD countries.
At its lowest point, only 58.6 per cent of the working population in OECD countries was employed - 2.2 percentage points lower than before the crisis in 2007. The OECD said this constituted 20.3 million jobs. By the end of 2015, this gap had fallen to 5.6 million jobs.
Nevertheless, the OECD said many countries were experiencing a significant wage gap - where wages are at least 5 per cent below the level they would be if they had continued the trend that was set during the 200-2007 period.
Much progress has been stalled by a sluggish global economy overall, marked by low investment and weak productivity gains, the think tank said.
Greece, Ireland and Spain in particular face large jobs gaps that are expected to extend through 2017, the OECD said. But employment rates have more than recovered in Chile, Germany, Hungary, Israel and Turkey.