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Learn from Employment Policies During the Global Financial Crisis in Oecd Countries

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Submitted By daganarthur
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Learn from employment policies during the global financial crisis in OECD countries
Writing by Arthur DAGAN

a. What has been the main impact of the global financial crisis on OECD countries? Why should governments be concerned about the impact, especially in the context of youth?
Let us first understand the cause of global financial crisis, his main impact on OECD and then why governments should be concerned about the especially case of youth.
The global financial and economic crisis, which erupted in the financial systems of developed countries in the autumn of 2008 by the wake of the collapse of Lehman Brothers, has affected quickly all economies throughout the world (Torres, 2011).
In the OECD countries, which are the first affected by the crisis, the main impact was the high level of unemployment generate by job losses, enterprise bankruptcies and cuts in the incomes of millions of people. Indeed, in April 2013, 8% of the OECD labour force was unemployed representing over 48 million people, almost 16 million more than in 2007 (Scarpetta, 2013). Despite the economic recovery in some of OECD countries mainly the United States, this trend could not improve until mid- 2014 so that we can observe a decrease in unemployment again.
The governments should be concerned about the impact the unemployment because in general, this phenomenon affect not just the person himself but also his/her family and in the long run the society where he lives, which in turn affect negatively the functioning of the economy. Some of the well-known effects of unemployment on the economy are: * Unemployment financial costs: the government has to pay the unemployed some benefits, so the greater the number of the unemployed or the longer they are without work the more money the government has to shell out , * Spending power: the spending power of an unemployed person…...

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