The number of people out of work in the world’s leading economies is expected to rise by 9 per cent to 34.8m by the end of next year under the impact of the credit crunch, the Organisation for Economic Cooperation and Development reported on Wednesday.

The effects of the rise may be more muted than in previous downturns, however, with employment markets starting from a historically very strong position. The total number of jobless even after next year’s forecast rise will still be slightly below the average struck between 1995 and 2005, says Angel Gurría, OECD general secretary.