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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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Recent labour market developments and the short-term outlook

This chapter provides an overview of recent labour market trends and short-term projections. It also discusses the implications of these developments for policy, particularly the need to better assist the most vulnerable youth to integrate into employment and begin climbing the career ladder. Emphasis is placed on several areas of current policy concern, including: persistently high unemployment in countries where labour market recovery has lagged; the implications of recent wage developments for enabling full economic recovery and improving workers’ living standards; the changing mix of jobs and its implications for matching workers with jobs that make good use of their skills; trends in job quality, including how it was affected by the crisis; and recent changes in the labour market prospects of vulnerable groups, particularly low-skilled youth.

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