Women, youth and people with low incomes are the most affected by the job crisis

IMF Forecasts Recession Worse Than Expected 3:37

(CNN Business) –– The job crisis caused by the coronavirus will last for years.

This is indicated by a new report from the Organization for Economic Cooperation and Development (OECD), which on Tuesday recorded that unemployment is much worse than what happened after the 2008 financial crisis. Furthermore, it will persist at high levels at least until 2022, according to the report.

• MIRA: Unemployment soars in Latin America due to the coronavirus

The Paris-based agency encouraged countries to extend unemployment benefits and other relief measures as necessary, especially as low-wage workers, youth and women are "receiving the brunt of the crisis." .

"Despite massive measures taken around the world, the uncertainty about the future development of the labor market is wide, since the risk of new outbreaks is high," said Stefano Scarpetta, director of labor, employment and social affairs at the OECD. "Much of what will happen depends on the evolution of the pandemic," he insisted.

Higher-income employees were 50% more likely to work from home than low-income employees during confinement, the OECD said; while women, who are more likely to work in sectors with difficulties, have been more affected than men.

In the most optimistic scenario, in which the virus continues to regress and remains under control, the agency predicts that unemployment will reach an average of 9.4% in OECD countries by the end of 2020 - the worst reading since the Great Depression–– before falling to 7.7% at the end of 2021. Towards the end of 2019, before covid-19 affected the world, the unemployment rate for OECD countries was 5.3%.

Now, the outlook seems even worse for a second wave of infections later this year. The OECD believes that unemployment would rise to 12.6% before falling to 8.9% in 2021.

Why it matters: The warning occurs as governments debate how to extend or modify costly aid to unemployed people and struggling businesses, which has so far been crucial in protecting some positions.

• READ: The US economy created 4.8 million jobs in June. But the news is not entirely encouraging

The Trump government released data Monday on approximately 4.8 million small businesses that have used more than $ 520 billion in loans through its Payment Protection Program (PPP), a central pillar. of the $ 2 trillion emergency financial aid effort deployed in March.

The program was so critical in the beginning that a first round of funding ran out in less than two weeks. However, interest has recently declined as changing conditions and borrowers' inability to obtain a second loan have limited applications.

Europe's response: The OECD noted that part-time work programs, which encourage employers to keep people on the payroll even if they don't work full hours, have been highly successful in limiting unemployment in countries like Germany, by helping an estimated 60 million people. But the situation continues to change.

On Tuesday, the European Commission lowered its economic outlook for the 19 countries that use the euro, and forecast a contraction of 8.7% in 2020 and growth of 6.1% in 2021. This is a big change from the previous projection, which indicated that the economy of the euro area would shrink 7.7% this year. It had also anticipated more robust growth in 2021.

Look at this space: The OECD indicated that almost half of all jobs "require frequent interactions", putting employees at risk of infection as economies reopen. The agency said this means that governments and companies must prioritize safety in the workplace and guarantee a "long" paid sick leave to maintain control of the contagion in the coming months.

TikTok leaves Hong Kong

TikTok announced that it will leave Hong Kong, a decision that follows that of other large technology companies that have expressed caution about operating in the financial center after China imposed a controversial national security law there, as reported by CNN Business Sherisse Pham. .

"In light of recent events, we have decided to halt operations of the TikTok app in Hong Kong," a platform spokesperson confirmed to CNN Business.

It's unclear when TikTok - owned by the Beijing-based ByteDance startup - will leave Hong Kong, and what that will mean for app users in the city.

The big picture: The TikTok announcement occurs when Facebook, Twitter, Google and Zoom said they would stop processing Hong Kong government requests for user data while conducting an assessment of the new law.

The measure, imposed last week by Beijing, criminalizes secession, subversion, terrorism and collusion with foreign powers. The law marks a radical change that critics say is an attack on the freedoms of speech and of the press that have long existed in Hong Kong, but are prohibited in mainland China.

On the radar: As tech companies scramble to figure out what their next actions will be, TikTok is poised to become a major source of tension between Washington and Beijing.

United States Secretary of State Mike Pompeo warned Monday night that his is "analyzing" the ban on TikTok and other Chinese social media applications.

People should only download TikTok "if they want their private information to be in the hands of the Chinese Communist Party," Pompeo said in an interview with Fox News.

Palantir presents the request for a public sale offer

Palantir Technologies, Silicon Valley's reserved data company, is about to become a little more transparent, CNN Business's Charles Riley reported.

What's Happening: Palantir has filed documents with the United States Securities and Exchange Commission (SEC) to issue shares in an initial public offering (IPO).

The company reported in a brief statement Monday that it had started a confidential process to sell its shares after the SEC completed a review.

Palantir did not disclose any financial information or additional details about its listing plans. But the move triggers a much-awaited IPO on the stock market and heralds the release of more information about a closely watched company and big speculation among tech investors.

What we know: After being founded more than 15 years ago by the technology heavyweights - including the famous investor Peter Thiel and its CEO, Alex Karp - Palantir has worked with United States government agencies such as the CIA and FBI, which has earned the data-processing firm a grim reputation and a valuation report of approximately $ 20 billion.

However, relatively little is known about the company's operations. Palantir touts its ability to manage and secure data on a massive scale, but says little about which corporations or governments buy its services.

More transparency: going public will eventually require Palantir to disclose additional information about your business. But an IPO's chosen route will keep some privacy on any important detail for an additional time. The confidential public offering process allows a company to privately file its registration statement, known as S-1, with the SEC for review.

This gives you the ability to keep confidential information out of the reach of competitors, customers, and investors until you are closer to being ready to list your shares.

What's coming

Levi Strauss reported earnings after the close of the US markets.

Coming soon: British Chancellor Rishi Sunak presents new measures to shore up the British economy. The OECD predicted that Britain will suffer the biggest blow to major economies this year as a result of the coronavirus pandemic.

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