All countries in Central and Eastern Europe are experiencing a switch from labour hoarding to labour shedding with rapidly rising unemployment. Identifying each country's specific labour market problems - in particular, those groups which are most vulnerable to unemployment - will be essential for developing appropriate policies. Based on detailed statistical information being collected by the OECD, this paper provides an overview of labour markets in Central and Eastern Europe, both prior to and since the start of the transition process.

Section I of this paper describes the main characteristics of employment and wage structures which have been inherited from the former centrally-planned system in Central and Eastern Europe and also analyses longer-run demographic and labour force trends. Section II discusses more recent labour market developments, including the nature of employment losses, job creation in the private sector and the characteristics of the unemployed. Finally, some specific recommendations are provided on how to improve monitoring systems of labour market developments in these countries.