This 30th edition of the OECD Employment Outlook examines recent labour market trends and short-term prospects in OECD countries. It finds that the recovery from the recent economic and financial crisis has been slow and uneven. Unemployment remains unacceptably high in many countries and long-term unemployment has risen, increasing the risk of higher unemployment becoming entrenched. An analysis of how labour markets weather economic shocks shows that policies to lower structural unemployment also help to dampen the adverse effects of economic downturns on unemployment, earnings losses and earnings inequality. The report documents the decline in the labour share of national income that has been occurring in many OECD countries, primarily as a result of globalisation and technological change. Enhanced investment in education and better targeted tax and transfer programmes can help to ensure that the fruits of economic growth are more broadly shared. Finally, the impact of climate-change mitigation policies on the labour market is examined. Some sectors could experience large employment changes even if the impact on the overall level of employment may only be small. As for other structural shocks, policies should be put in place to facilitate labour market mobility.
- Publication Date :
- 10 July 2012
- DOI :
What Makes Labour Markets Resilient During Recessions?
- Pages :
- DOI :
Show Abstract /
This chapter analyses the impact of selected labour market policies and institutions for labour market resilience, defined as the extent to which labour markets weather economic downturns with limited social costs. One of the main insights that emerges from this chapter is that policies and institutions that are conducive to good structural labour market outcomes also tend to be good for labour market resilience. In particular, co-ordinated bargaining institutions can contribute to both good structural performance and labour market resilience, while the intensive use of temporary contracts tends to be associated with both weaker structural outcomes and less resilience.