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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.

The Productivity-Inclusiveness Nexus proposes a new approach to boost productivity growth while, at the same time, reducing inequalities of income and opportunities. The report begins by examining the trend slowdown of productivity growth, which has been observed in many OECD countries over recent years, and the longer-standing rise - and persistence - of inequalities of income, wealth, well-being and opportunities. It then gathers the most recent empirical evidence on some of the common foundations behind these trends and considers possible linkages. The analysis aims to shed light on policy insights to address both issues together, creating room for synergies and win-win policies.

Canadians enjoy a high level of well-being. On all eleven components of the OECD’s Better Life Index, Canada performs better than the OECD average. The economy and labour markets stood up better than those of most OECD countries to the ravages of the global financial crisis. Still, there are some areas where the country can do even better. Canada needs to improve its productivity performance, building on the recent increased growth in labour productivity to narrow the gap with top-performing OECD countries in terms of the level of productivity. The productivity gap with the United States is particularly large for small and medium-sized enterprises. Productivity growth could also be more inclusive. People from socially disadvantaged backgrounds and Indigenous communities currently do not participate to the extent that they should in the country’s strong economic performance. Finally, Canada needs to make growth greener, in order to contribute its fair share to the global fight against climate change.

The OECD series Recruiting Immigrant Workers comprises country studies of labour migration policies. Each volume analyses whether migration policy is being used effectively and efficiently to help meet labour needs, without adverse effects on labour markets. It focuses mainly on regulated labour migration movements over which policy has immediate and direct oversight. This particular volume looks at the efficiency of European Union instruments for managing labour migration.