Harmonised unemployment rates for 28 economies in July spanning 2008-2010

19-Sep-2010

I like this.

By

An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

Posts by
Liu-Yue Lam’s Website







Harmonised unemployment rates: a tad scary

By Rebecca Wilder

Across the OECD, the unemployment rate was unchanged at 8.5% in July 2010.

The chart illustrates the harmonised unemployment rates for 28 economies in July spanning 2008-2010 (based on data availability, the comparison month is June for Chile, Netherlands, Norway, and Turkey, and May for the UK). The countries are ranked by the percentage change in the unemployment rate from 2008 to 2010, where Denmark is the highest, 115% increase, and Germany is the lowest, -4.2%.

The story in this chart is obvious: the slack in global economic activity remains extreme in much of the developed world. More growth it needed; but apparently, we’re not going to get it.

The OECD released its index of composite leading indicators (CLI, where you can view the components of the index for each country here) for July. The pace of economic expansion is waning. (Click on chart to enlarge.)

From the release:

The CLI for the OECD area decreased by 0.1 point in July 2010. In Canada, France, Italy, the United Kingdom, China and India there are stronger signals of a slower pace of economic growth in coming months than was anticipated in last month’s release. Stronger signals that the expansion may lose momentum have emerged in Japan, the United States and Brazil. Tentative signals have also emerged that the expansion phases of Germany and Russia may soon peak.

According to the composite CLI, the OECD hit a cyclical trough in May 2009 (14 months before the July release). Since then, the unemployment rate has risen in 20 of the 28 listed economies.

The robust global restocking of inventories fueled world export income; but that cycle is now over (see the chart on page 8 of the OECD’s interim forecast). Furthermore, expansionary policy, which underpinned domestic demand around the world, is tightening.

Policy will turn expansionary again in several of these economies. The faltering sum of income will drag global growth further until stabilizing policy kicks in.

Source: Rebecca Wilder, News N Economics, September 15, 2010.
Tags: , ,
Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

Subscribe without commenting