Employment in some of the world's biggest economies dipped in the first quarter of 2020, with young people the most affected, according to the Organisation for Economic Co-operation and Development (OECD).
The employment rate, defined as the number of working-age people with jobs, fell to 68.6 per cent in the first three months of the year, compared to 68.9 per cent in the previous quarter among the OECD's 37-member countries, the Paris-based organisation said in a report on Thursday.
The OECD employment rates for women and men decreased at the same pace, to 61.3 per cent and 76.1 per cent respectively, the report showed. However, young people fared worse with the employment rate among youth aged 15 to 24 falling to 41.9 per cent, from 42.3 per cent.
In June, the OECD said it expects the world economy to shrink 6 per cent this year before growing 5.2 per cent in 2021, if the coronavirus is contained. In the event of a second wave of infections, the world economy may contract 7.6 per cent before growing by 2.8 per cent next year.
Data on employment rates in the second quarter paint a gloomy picture in the US and Canada, showing a deeper plunge in the number of people with jobs compared to the first quarter.
The employment rate in the US fell nearly 9 percentage points to 62.6 per cent in the second quarter, making it the lowest on record since the fourth quarter of 1998.
The US youth employment rate was particularly affected, dropping by more than 12 percentage points to 38.6 per cent, compared with their older peers. US workers aged 25 to 54 saw employment drop to 71.5 per cent from 80.1 per cent while those between 55 to 64 years saw a fall to 57 per cent from 63.5 per cent.
During the second quarter, the number of persons in temporary lay-off in the United States reached 18.1 million in April, before decreasing to 10.6 million in June, according to the report.
Similarly, in Canada, the employment rate fell to 64.7 per cent in the second quarter from 73.2 per cent in the first quarter.
Among OECD countries with monthly labour force surveys, over April and May, the employment rate fell by a total of 10.3 percentage points in Colombia to 50.6 per cent. In Australia, employment fell by 4.7 percentage points to 69.8 per cent.
The decrease was lower in Japan, down by 1 percentage point to 76.9 per cent, while employment in Korea fell by 0.4 percentage points, to 65.4 per cent.
The impact of Covid-19 on the workforce of OECD economies is 10 times larger than during the first three months of the 2008 financial crisis, the Paris-based organisation said in its employment outlook report on July 7.
Unemployment in the OECD countries is expected to rise to 9.4 per cent this year, up from 5.3 per cent in 2019, if the outbreak is kept under control, the organisation said in its latest employment outlook report on July 7.
Even then, it remains the worst unemployment figure since the Great Depression and could increase to 12.6 per cent this year if there is a second wave of infections.
Brief scoreline:
Manchester United 1
Mata 11'
Chelsea 1
Alonso 43'
Fresh faces in UAE side
Khalifa Mubarak (24) An accomplished centre-back, the Al Nasr defender’s progress has been hampered in the past by injury. With not many options in central defence, he would bolster what can be a problem area.
Ali Salmeen (22) Has been superb at the heart of Al Wasl’s midfield these past two seasons, with the Dubai club flourishing under manager Rodolfo Arrubarrena. Would add workrate and composure to the centre of the park.
Mohammed Jamal (23) Enjoyed a stellar 2016/17 Arabian Gulf League campaign, proving integral to Al Jazira as the capital club sealed the championship for only a second time. A tenacious and disciplined central midfielder.
Khalfan Mubarak (22) One of the most exciting players in the UAE, the Al Jazira playmaker has been likened in style to Omar Abdulrahman. Has minimal international experience already, but there should be much more to come.
Jassim Yaqoub (20) Another incredibly exciting prospect, the Al Nasr winger is becoming a regular contributor at club level. Pacey, direct and with an eye for goal, he would provide the team’s attack an extra dimension.
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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