What is assessed?
The principal objective of the OECD Jobs Strategy is to promote policies and institutions that can foster sustained improvements in individual and societal well-being through stronger labour market performance, inclusiveness and economic growth. For the purposes of the new OECD Jobs Strategy, labour market performance is characterised along three complementary dimensions that are key for inclusive growth and well-being more generally:
- More and better jobs. This captures the current labour market situation in terms of both the quantity of jobs (e.g. employment, working time) as well the quality of jobs by taking account of the three dimensions of the OECD Job Quality framework.
- Inclusive labour markets. This dimension focuses on the current distribution of outcomes and opportunities across individuals and households. This includes the share of income going to labour, the distribution of individual earnings and household incomes, and differences in access to jobs and job quality outcomes between different socio-economic groups. It also includes dynamic aspects of inequality related to the prospects for social mobility and career advancement.
- Adaptability and resilience. This dimension relates to the effectiveness with which individuals and societies absorb, adapt to, and make the most out of, idiosyncratic, occupation/sector-specific and aggregate shocks, which arise as a result of economics crises, the continuous process of creation and destruction of jobs, firms and activities (creative destruction) and megatrends (e.g. technological change, including automation and digitisation, climate and demographic change and globalisation).
These three dimensions should be considered jointly when assessing labour market performances and the role of policies and institutions in influencing them.
How do countries compare?
To what extent can policy improve labour market performance along each of the three dimensions of the new OECD Jobs Strategy? Can synergies be developed or are trade-offs inevitable? How do policy priorities differ across countries? A good way of getting a first idea about the answers to these important questions is to make use of a dashboard that compares labour market performance across OECD countries and major emerging market economies along each of its dimensions.