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OECD Employment Outlook 2016

image of OECD Employment Outlook 2016

This 2016 edition of the OECD Employment Outlook provides an in-depth review of recent labour market trends and short-term prospects in OECD countries. Chapter 1 examines recent labour market developments, with a special focus on vulnerable youth who are neither working nor in education or training. The size of this group has grown in recent years in many OECD countries and governments will need to take vigorous policy measures if they are to meet the target, recently adopted by G20 governments, of reducing the share of youth who are vulnerable by 15% by 2025. Chapter 2 considers skills use at work: are countries doing enough to assure that workers are able to make full use of their skills on the job? Chapter 3 looks at the short-term effects of structural reforms on employment and identifies successful strategies for reducing transition costs. Chapter 4 looks at how to close the labour market gender gap in emerging economies, proposing a comprehensive policy response to the problem. The Outlook’s analysis and recommendations are complemented by a statistical annex.

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Editorial: Back in work, but still out of pocket

Labour markets continue to recover from the Great Recession, albeit in a painfully slow manner in many OECD countries. While progress has been made in reversing the crisis-related increase in unemployment, little progress has been made in recouping the lost ground on wages. Overall, three-quarters of OECD countries still face either a sizeable unemployment gap – an unemployment rate that is 2 percentage points or more above the pre-crisis level – or a sizeable wage gap – average wages at least 5% below the level they would be at if they had continued the trend increase during 2000-07 – or both.

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