Description
People with the same skills can face very different job prospects, incomes and opportunities depending on where they live. Across OECD countries, employment rates can differ by around 20 percentage points between regions, creating persistent gaps in economic opportunity and social mobility.
This video explores why economic differences between regions continue despite some convergence over the past 20 years. While moving from lower-income regions to higher-income regions may help some people access better opportunities, such movement remains limited. Less than 3% of the population move across regions each year, with barriers including distance, the high cost of moving and the concentration of low and high unemployment regions in different parts of a country.
The video also examines how regional differences affect income, wage progression and long-term opportunities. It highlights the need for a balanced approach that supports mobility, particularly among young people, while strengthening opportunities locally through industrial, educational and employment policies that help people meet the skill needs of employers in their region.
Speakers
Sephane Carcillo | Head of the Jobs and Income Division, OECD Directorate for Employment, Labour and Social Affairs
Chapters
00:00 Regional differences in jobs and opportunities
00:19 Why gaps persist across regions
00:32 The constraints of relocating for work
01:28 Building opportunities through place-based policies
What you will learn in this video
Why do employment and unemployment rates vary so much across regions in OECD countries?
Employment rates can differ by around 20 percentage points. In the worst-performing regions, unemployment is on average over twice as high as in the best ones. People with the same skills can face very different opportunities depending on where they live.
How do regional differences affect income and career prospects?
Different economic opportunities across regions lead to differences in living standards. People in poorer performing regions face fewer chances to move up the income ladder.
What policies can help people find good jobs and revitalise underperforming regions?
Supporting mobility can help some people access better opportunities. Place-based industrial, educational and employment policies can strengthen opportunities locally.
