Addressing labour market challenges in Belgium
Job creation has lowered unemployment, but the Belgian labour market still faces many
challenges. Employment rates remain low, reflecting barriers to finding a job such
as low levels of skills and weak work incentives. In addition, the changing nature
of work will require faster adaptation of workers. In order to address these challenges,
this chapter presents a detailed analysis of policy priorities, drawing notably on
insights from the OECD Jobs Strategy. One priority should be that each worker has
access to lifelong training, with additional allowances targeted to disadvantaged
workers. To improve transitions into work, the use of tools for the profiling of individualised
risks should be extended. A better combination of income support and incentives could
be achieved through reforming both unemployment and in-work benefits. Reforming some
aspects of employment protection legislation, such as those related to collective
dismissals, and the wage formation system, would boost flexibility.
This Working Paper relates to the 2020 OECD Economic Survey of Belgium http://www.oecd.org/economy/belgium-economic-snapshot/.
Published on March 20, 2020Also available in: French