The world’s developed economies have got a new stage of unemployment – its level is back down to before financial crisis. According to data from OECD unemployment level fell 5.6pc in October across the 35 countries, while in 2010 its peak was 8.5pc.
The eurozone overall still suffers a jobless rate of 8.8pc, below its 12.1pc peak in 2013 but above its 2008 level of 7.4pc. In the countries with very low jobless rate it is expected that pay growth will start in near future.
“It certainly appears that there have been structural shifts in the labour market across the industrialised world with the result that wages are less responsive for any given rate of unemployment.”
— Adam smith