OMC Livre 2005.indb

Despite the recovery in the world economy in 2003 and 2004, unemployment remained high in many industrial countries. Even in those countries which reported a strong recovery, such as the United States and the United Kingdom, employment levels recovered only moderately, leading many observers to wonder about a “jobless recovery”. Although employment growth typically lags behind in each cyclical output recovery, sluggishness in services sector employment seemed to be a new development. In previous downturns, the services sector continued to generate new jobs. The information communications technology (ICT) sector – one of the most dynamic sources of new employment in the 1990s – not only slowed down in terms of job growth, but actually experienced a decline in the payroll after the ICT crash in 2000-01. Many dot.com companies and telecom firms closed down or had to downsize as investment outlays in IT hardware and software decreased in OECD countries.1