OECD Publishes 2008 Employment Outlook

The Organization for Economic Co-operation and Development’s (OECD) latest edition of the Employment Outlook reports that although OECD labor markets are overall in good shape, with a 5.6% unemployment rate in 2007 being the lowest rate since 1980, unemployment is notably rising in the United States, Ireland and Spain. The number of unemployed persons in the OECD area is expected to increase by 1 million persons in 2008 and by another 2 million in 2009, resulting in an OECD unemployment rate of 6%.

One of the main messages of the 2008 Employment Outlook is the pressing need to increase efforts to fight labor market discrimination. According to OECD’s findings, women are 20% less likely than men to have a paid job in OECD countries and they earn on average 17% less than men do. Discriminatory practices in the labor market are responsible for at least 30% of the wage gap and 8% of the employment rate gap. In some OECD countries, it takes ethnic minorities 40-50% more time to get a job interview than comparable candidates belonging to majority groups.

Although almost all OECD countries have passed anti-discrimination laws and promoting equal opportunities is a major policy concern in OECD countries, the OECD asserts that governments still need to proactively ensure a level playing field. The OECD report offers some recommendations to fight labor discrimination:

* Long-term investment in education and training can prepare people better for the labor market.
* Structural reforms to promote stronger and more sustainable economic growth can boost demand for workers, creating a more competitive environment that forces managers to drop discriminatory hiring and promotion practices.
* Specific anti-discrimination legislation needs to be backed up by effective enforcement.
* Enforcement agencies should be empowered, even in the absence of individual complaints, to investigate companies and sanction employers when they find evidence of discrimination.

The Employment Outlook also discusses policy objectives for youth labor market conditions, informal employment, work-related mental health problems, and OECD-based multinationals.

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