The 2023 edition of the OECD Employment Outlook examines the latest labour market developments in OECD countries. It focuses, in particular, on the evolution of labour demand and widespread shortages, as well as on wage developments in times of high inflation and related policies.

The transition to net-zero emissions by 2050 will have profound impacts on the labour market and the jobs of millions of workers. Aggregate effects on employment are estimated to be limited. But many jobs will be lost in the shrinking high-emission industries, while many others will be created in the expanding low-emission activities. This edition of the OECD Employment Outlook examines the characteristics of the jobs that are likely to thrive because of the transition (“green-driven jobs”), including their attractiveness in terms of job quality, and compares them to jobs in high-emission industries that tend to shrink. The cost of job displacement in these latter industries is assessed along with the trajectories of workers out of them towards new opportunities, and the labour market policies that can facilitate job reallocation. Particular attention is devoted to upskilling and reskilling strategies to facilitate workers’ transition into fast-growing, green-driven occupations. The distributive impacts of climate-change mitigation policies are also examined, with a focus on carbon pricing and options to redistribute its tax revenue to those most impacted. As usual, the first chapter of the Outlook assesses recent labour market developments (including wage trends), but also provides an update of the OECD Job Quality indicators.

The 2019 edition of the OECD Employment Outlook presents new evidence on changes in job stability, underemployment and the share of well-paid jobs, and discusses the policy implications of these changes with respect to how technology, globalisation, population ageing, and other megatrends are transforming the labour market in OECD countries.

Economic growth is resuming, but challenges remain. Gradual fiscal consolidation is required over the short term to support the return of inflation to target and rebuild fiscal space, following substantial support during the pandemic and the energy crisis. Growing spending needs due to ageing and investment necessary to support the green transition call for tax reforms to strengthen revenues. Supply-side reforms are needed to sustain growth, including by providing businesses with certainty regarding taxation and land use planning to boost investment, and by strengthening work incentives to reduce economic inactivity. The United Kingdom is a front runner in the progress to reach net zero by 2050, but more effort is needed to accelerate emission reductions in residential housing, including a clear long-term strategy, pricing signals, regulatory timelines, and financial support to stimulate the market for decarbonised heating solutions. SPECIAL FEATURES: BOOSTING LABOUR SUPPLY; ENHANCING BUSINESS INVESTMENT TO LIFT PRODUCTIVITY; GREENING THE RESIDENTIAL HOUSING SECTOR

Colombia joined the OECD in 2020, bringing to a successful conclusion an accession process that began in 2013. During the accession process, Colombia made important reforms and progress in the area of labour market and social policies, converging towards OECD best policies and practices. However, the OECD invited the Colombian government to continue its reform agenda in four areas in particular: (1) labour informality and subcontracting; (2) labour law enforcement; (3) collective bargaining; and (4) crimes against trade unionists. This report is the OECD’s second post-accession assessment.

Spain has been confronted with weak wage and productivity growth for several decades. This report provides an overview of the role that labour market policies as well as other policies can play in reviving broadly shared productivity growth in Spain. To set the scene, it starts with documenting the decline in broadly shared productivity growth and its underlying mechanisms.

This report discusses the role of Korea's active labour market policies (ALMPs) and one-stop shops for employment and social services in fostering a more inclusive labour market.

Skills are vital for building resilient economies and societies. By helping individuals develop a diverse range of skills and empowering them to apply these skills effectively, skills policies play a crucial role in responding to emerging threats, such as environmental degradation and harmful applications of technologies used to collect, generate, and exchange information. This edition of the Skills Outlook highlights the importance of supporting individuals in acquiring a wide range of skills, at varying levels of proficiency, to promote economic and social resilience. Additionally, the report acknowledges the role of attitudes and dispositions in enabling skills development and effective skills use. It also emphasises the need for policy makers to monitor the costs associated with policies aimed at promoting the green and digital transition, and how the transition affects inequalities. Training opportunities that respond to emerging labour market needs and efforts to facilitate their uptake can promote a just and inclusive green and digital transition. In turn, education systems that equip young people not only with skills but attitudes to manage change can ensure that the green and digital transition is sustainable in the longer term.

Recognising that individuals’ jobs and circumstances can change multiple times in a year, this report uses novel techniques to identify who is most exposed to income instability in European OECD countries and examines the effects it has on their lives, social mobility, and inequality.

This issue includes a general assessment, a special chapter on the effects of digitalisation on productivity and a chapter summarising developments and providing projections for each individual country.