The latest data from the Organisation for Economic Cooperation and Development shows the continent’s job picture cooling slightly in August. The unemployment rate edged up by one tenth of a percentage point, settling at 4.9 percent. This uptick followed a period of relative stability and sits just above the near-record low of 4.8 percent observed the previous month, underscoring a resilient but cautious labour market narrative across member countries.
For the eighth month in the year, the OECD framework calculates unemployment in the bloc as a whole, marking a point where the aggregate rate remains near the threshold that characterizes labor markets with broadly improving conditions. The broader trend suggests that while many economies continue to expand, there are pockets of weakness that temper overall momentum within the group of nations that share common economic indicators and policy aspirations.
In August, the total number of unemployed people across OECD members increased by 371,000 compared with July, bringing the aggregate figure to about 33.192 million. This rise reflects a mix of seasonal factors, structural shifts, and the diverse pace of recovery across regions. While several economies added workers, others faced setbacks in hiring pace or temporary layoffs that contributed to the monthly jump in unemployment figures.
Among OECD economies, the highest unemployment rates persisted in Turkey, Spain, Greece, and Costa Rica, with July readings registering 12.3 percent in Turkey and Spain, 12.2 percent in Greece, and 11.8 percent in Costa Rica. These elevated levels highlight ongoing labour market fragility in some Southern European economies and certain emerging markets, where youth and long-term unemployment often remain stubbornly elevated despite broader growth trends.
On the other end of the spectrum, several economies posted comparatively low unemployment rates. The Czech Republic led the group with about 2.4 percent, followed closely by Japan and South Korea at roughly 2.5 percent, and Poland around 2.6 percent. These figures point to tight labour markets in parts of Central Europe and East Asia, where demographic dynamics and strong export sectors support high employment capacity and wage growth pressures in some cases.
When looking at younger workers, the August figures show a modest rise in youth unemployment, up three-tenths of a percentage point to 10.6 percent. The burden is most acutely felt in certain economies where youth labour market integration remains challenging. Greece reported the highest rate among the youngest workers at about 28.6 percent, followed by Spain at 26.6 percent and Italy at 21.2 percent. These numbers reflect structural barriers to entry for younger people, even in times of overall economic improvement, and they underscore the importance of targeted policies on apprenticeships, vocational training, and private-sector job creation for younger generations.
Conversely, several markets continue to demonstrate relatively robust youth employment prospects. Japan, Germany, and South Korea posted the lowest youth unemployment rates, approximately 3.9 percent, 5.7 percent, and 6.2 percent respectively. These figures illustrate how advanced economies are leveraging education systems, industrial mix, and social safety nets to preserve opportunities for younger workers even as the overall unemployment rate fluctuates. The divergence between youth and overall unemployment in certain countries also signals varying stages of economic maturity and different policy priorities aimed at sustaining long-term labor market health.