OECD Employment Outlook 2026

Where people live shapes their chances of finding good jobs and moving up the income ladder. The OECD Employment Outlook 2026 documents large and persistent gaps in employment, unemployment and disposable incomes across regions. Regional access to job opportunities plays a key role in determining both income levels and income mobility. By contrast, mobility across regions alone is insufficient to close existing gaps in labour market outcomes, and can even widen them. Local labour markets are also being reshaped by trade and technology shocks, including artificial intelligence, with some regions losing manufacturing jobs while others are creating more service jobs and non-routine work. However, adjustment to such changes often occurs through transitions into joblessness and job opportunities for newcomers rather than because affected workers move across sectors, leaving lasting scars for displaced workers. The report calls for integrated, place-based strategies that combine regional and industrial policies with effective employment and social support to help workers and communities develop new opportunities and navigate structural change. The Outlook also examines recent labour market developments and investigates changes in how skills translate into pay and job prospects, as well as aspects of labour regulation such as employment protection legislation and non-compete agreements.