Presentation by Stefano Scarpetta, OECD Director for Employment, Labour and Social Affairs during the meeting of the OECD Global Parliamentary Network on 2 October 2014. The OECD supports the G20 employment track by reviewing labour market and social developments in G20 countries and highlighting the key policy challenges, as well as by identifying good practices in G20 countries and policy options for a more inclusive labour market tailored to the specific conditions of each country. The OECD has provided extensive support to the G20 Task Force on Employment, notably by contributing to the identification of concrete commitments in the context of the country employment plans, which will feed into the G20 national growth strategies. This includes recommendations on actions to promote a more gender-balanced economy, safer workplaces as well as on policies to tackle structural unemployment and under-employment in low productivity and low paid jobs.

1. 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

2. “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

3. Structural unemployment
Key challenges addressed
3

4. 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

5. 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

6. Poor youth employment outcomes
Key challenges addressed
6

7. 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. 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
0102030405060708090YouthAdults0102030405060708090YouthAdults

9. 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.

10. Promoting greater gender equality
Key challenges addressed
10

11. 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

12. 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
21002200230024002500260027002800BaselineprojectionClosing thegender gap

13. 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..

14. 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.

15. Read more about the OECD’s work on youth, gender,
job quality and much more:
Website: www.oecd.org/employment/outlook
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Thank you