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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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Skills use at work

Why does it matter and what influences it?

This chapter analyses how skills are used at work, why skills use matters for workers and economies and its key determinants. It draws on data for the 28 OECD countries participating in the Survey of Adult Skills. The use of skills at work is just as important a determinant of individual and aggregate economic outcomes as the development of skills, but it is less studied. After explaining how skills use at work is measured in the survey, the chapter reviews how skills are used at work and how this varies across countries. It then shows that skills use has a substantial impact on productivity, wages and job satisfaction. The chapter also analyses several determinants of skills use, including High-Performance Work Practices, globalisation and offshoring, and labour market institutions. The chapter concludes by identifying policy options for improving skills use, drawing from specific country examples and the chapter’s empirical findings.

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