The Organisation of Economic Cooperation and Development's (OECD) latest employment report has warned that industrialised countries should be prepared for a rise in unemployment over the next year.

Although almost all member states, with the exception of Portugal, Ireland and Mexico, saw their unemployment rate fall in 2007 - bringing the OECD average to its lowest level for 27 years - that trend is expected to be reversed this year.

The organisation's report predicted that unemployment across its 30 nations will increase to 5.7 per cent in 2008 and rise to six per cent next year, the same rate as in 2006.

A slowdown in economic growth across the OECD countries is to blame for this, it said, adding that this is the "result of the recent financial turmoil, cooling of housing markets and the soaring of commodity prices".

In related news, the organisation recently urged Portugal to speed up reforms of its labour market.