OECD employment and labour force participation rates remained stable in the second quarter of 2025 at their respective record highs of 70.3% and 74.1% (Figure 1). Of the 38 OECD countries, 10 saw increases in both indicators compared to the previous quarter, with six including France and Japan recording rates at or close to their historical highs (Tables 1 and 2).
In Q2 2025, Türkiye remained the OECD country with the lowest employment rate, at 54.9%. By contrast, employment rates were above 80% in Japan, Switzerland, the Netherlands, and Iceland (Figure 2). Employment rates rose in 17 OECD countries compared with the previous quarter, while they were stable in 11 and fell in 10 (Table 1).
Labour force participation rates for individuals aged 15 to 64 were above the OECD average of 74.1% in three-quarters of OECD countries in Q2 2025. Türkiye, Mexico, Costa Rica, and Italy recorded the lowest rates (Table 2).
Compared to the same quarter in 2024, the OECD employment rate was broadly stable in Q2 2025. In the euro area, the employment rate increased by 0.4 percentage points (p.p.), driven by a growing participation rate. The largest year-on-year increases in the employment rate were recorded in Colombia and Greece (both up by 1.2 p.p.), largely due to falling unemployment rates. Employment rates in Estonia and New Zealand fell by 1.0 p.p. or more compared to Q2 2024. This decline was mainly due to a lower participation rate in Estonia, and to a combination of rising unemployment and falling participation rates in New Zealand (Figure 3).
In August 2025, the OECD unemployment rate was relatively stable at 5.0%, having been at or below 5.0% since April 2022 (Table 3 and Figure 4). It was broadly stable for both women and men as well as for workers aged 25 and above. However, for younger workers (aged 15-24) the OECD unemployment rate edged up to 11.6% in August from 11.2% in July (Tables 5 and 6). In the European Union and the euro area, unemployment rates in August remained largely unchanged at 5.9% and 6.3%, respectively. Compared with July, August unemployment rates were unchanged in 23 OECD countries, rose in 7, including Canada and Japan, and declined in 2 only. More timely estimates for Canada indicate that the unemployment rate remained stable at 7.1% in September 2025.
Figure 1 – Labour market situation in the OECD area
Employment, labour force and inactive population, Q2 2025, and unemployment, August 2025, seasonally adjusted
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