G20 LABOUR AND EMPLOYMENT: THE SOCIAL DIMENSION

Stefano Scarpetta Director of Employment, Labour and Social Affairs

Meeting of the OECD Global Parliamentary Network 2 October 2014, Paris

“Prevent structural unemployment, creating better jobs and boosting participation”

• The Task Force on Employment that prepared the

Ministerial meeting focused, in particular, on: • Developing country employment action plans; • Boosting participation, with a special focus on

youth and women • Identifying suitable policies to prevent increases in

structural unemployment and informality; • Promoting safe and healthy workplaces for all

2

The G20 Labour and Employment Ministerial meeting Melbourne, 10-11 September 2014

Structural unemployment

Key challenges addressed

3

Long-term unemployment1

Percentage of total unemployment, 20132

Countries are ordered by ascending order of the incidence of long-term unemployment in Q1 2014. * Selected urban areas. 1. Persons unemployed for one year or more. 2. Q3 2007-Q3 2013 for the Russian Federation; and Q1 2008-Q1 2014 for South Africa. Source: OECD estimates based on various national surveys and ILO Statistics, Short-Term Indicators Database.

0

10

20

30

40

50

60

70%

Q4 2007 Q1 2014

Long-term unemployment has risen and remains high in many countries

Employment rates by socio-demographic characteristics

Percentage of the population of the indicated group, 20131

Countries are ordered by ascending order of the prime-age male labour force participation rates in 2013. * Selected urban areas. 1. 2010 for China; 2011-12 for India; 2012 for Brazil; and Q3 2013 for Indonesia. 2. Youth refers to persons aged 16-24 for China, Spain, the United Kingdom and the United States; Older persons refers to persons aged 55 and over for India. Source: OECD Labour Force Statistics Database and national labour force surveys.

0

20

40

60

80

100

120

%

Prime-age men(aged 25-54)

Youth (2)(aged 15/16-24)

Prime-age women(aged 25-54)

Older persons (2)(aged 55-64)

Large employment differences between groups

Poor youth employment outcomes

Key challenges addressed

6

7

Youth unemployment rate Percentage of the labour force aged 15/16-24, Q4 20071-Q2 20142

Countries shown by ascending order of the youth unemployment rates in Q2 2014. * Selected urban areas. 1. 2005 for China; 2007/08 for India and Q1 2008 for South Africa.. 2. 2011/12 for India; 2010 for China; Q4 2013 for Argentina; and Q1 2014 for Brazil, Indonesia, the Russian Federation, Saudi Arabia, South Africa, Turkey and the United Kingdom. Source: OECD calculations based on OECD Short-Term Labour Market Statistics Database; ILO, Short-term Indicators of the labour Market; Census data for China and National Sample Survey for India.

Many youth are unemployed or inactive and not involved in education

0

10

20

30

40

50

60%

Q4 2007 Peak Q2 2014

8

Incidence of temporary employment, 2013 As a percent of all employees in each groupa

*: Selected urban areas only. a) Youth aged 15-24 and adults aged 25 and over. Source: OECD estimates.

Job quality is often poor for youth and skills mismatch is frequent

Incidence of informal employment, 2011 As a percent of all employees in each groupa

0102030405060708090

Youth Adults

0102030405060708090

Youth Adults

Important to assess impact of recent G20 youth initiatives

9

Better youth employment outcomes essential for growth and social cohesion

G20 countries have taken important commitments and actions on youth welcome

Quality apprenticeships/internships can play an important role

But more needs to be done Short-term measures to tackle high youth unemployment Long-term measures to improve skills and access to quality jobs

See: OECD and ILO (2014), Promoting Better Labour Market Outcomes for Youth, report prepared for the G20 Labour and Employment Ministerial Meeting, Melbourne, 10-11 September 2014.

Promoting greater gender equality

Key challenges addressed

10

Source: OECD estimates.

Large gender gaps remain in labour participation, access to quality jobs and pay

11

Participation rate

-26% points

Employment rate

-26% points

Incidence of self-employment

-3.5% points

Earnings -19%

Gender gaps for the G20 median economy

The labour force projections are based on population projections for persons aged 15-64 years, by 5-year age group. 1. Baseline: Participation rates are projected by assuming that labour force entry and exit rates by gender and 5-year age groups remain constant at

their average value over the period 2003-2012 (2005-2010 for China). 2. Closing the gender gap: The gender gap in participation for the working-age population (15-64) in 2012 is assumed to narrow by 25% by 2025 ,

50% by 2040 and 75% by 2055.. Source: OECD projections based on the OECD Population and Demography database and the OECD Employment database.

Gradually closing gender gaps would boost growth and well-being in G20 countries

Impact of closing the gender gap in participation on G20 labour force growth, 2014-2050 Millions

12

2100

2200

2300

2400

2500

2600

2700

2800

Baselineprojection

Closing the gender gap

Promote entrepreneurship

Comprehensive policies are needed to improve access to quality jobs for women

Eliminate unequal treatment

Make work pay and improve job quality

Promote gender equality

13 See: OECD, ILO, IMF and World Bank (2014), Achieving Stronger Growth by Promoting a More Gender-Balanced Economy, report prepared for the G20 Labour and Employment Ministerial Meeting, Melbourne, 10-11 September 2014..

Promoting gender equality -- committed to closing gender gaps in opportunities and labour market outcomes, and recommended that G20 Leaders adopt goal of reducing gender gap in participation by 25% by 2025

Response of G20 Labour Ministers: declaration on “Preventing structural unemployment, creating better

jobs and boosting participation”

Employment Plans were developed for the first time -- it was agreed to review progress with implementation and encourage their further development.

Tackling informality and unsafe workplaces -- committed to develop strategies that support transitions to the formal economy, and committed to implement recommendations of G20 Statement on Safer and Healthier Workplaces.

Tackling youth and structural unemployment -- committed to take concrete actions to place young people in education, training or jobs, and agreed to pursue policies to help prevent structural unemployment, including through well-functioning labour markets and opportunities for lifelong learning, which help to address skills mismatch.

14 See: G20 Labour and Employment Ministerial Declaration, Melbourne, 10-11 September 2014.

Read more about the OECD’s work on youth, gender, job quality and much more:

Website: www.oecd.org/employment/outlook Follow us on Twitter : @OECD_Social

Thank you