OECD – Consequences of the Ukraine war cloud employment prospects

Gas station

Rising energy and raw material prices are having an impact on the cost of living.

(Photo: AP)

Berlin The employment prospects are according to an OECD study, very uncertain as a result of the Ukraine war. According to the Industrialized Nations Organization, the labor market situation in most OECDcountries remain tight, but employment growth is likely to slow.

At the same time led the sharp rise in energy and raw material prices led to a crisis the cost of living. "Russia's war of aggression against the Ukraine weakens the growth of the world economy and leaves the inflation increase, which has a negative impact on business investment and private consumption," the OECD said on Friday.

The rising food and energy prices demanded a lot, especially from low-income households, said OECD Secretary General Mathias Cormann. "Despite general staff shortages, real wage growth is not keeping pace with the currently high inflation rate."

In this context, states should consider targeted and temporary relief measures. This would cushion the impact of the crisis on consumers and businesses that needed help most.

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Firms across the OECD are facing unprecedented labor shortages due to tight labor markets. In the European Union, almost a third of manufacturing and service companies reported production difficulties due to staff shortages in the second quarter.

More: Swiss-Re boss Mumenthaler: "There is no choice but to increase prices"

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