Labor markets in most industrialized countries have been robust in recent years
The labor markets in most OECD countries have been robust according to an OECD study in the past few years - with historically low unemployment rates. In comparison to the time before the Coronavirus-Pandemic, the employment situation for women has often improved more than for men, the Organisation for Economic Co-operation and Development (OECD) announced on Tuesday. Employment is generally on the rise, particularly among older people.
Real wages are rising again in most OECD countries, according to the study, as inflation has normalized. However, they are still below the level of 2019, that is, just before the Corona-Pandemic outbreak. In many countries, there is still room for companies to raise wages from profits. Indications of a so-called wage-price spiral are not present. In this scenario, rising wages lead to higher inflation, which in turn must be balanced out by wage increases.
The plans of OECD countries to become carbon-neutral by latest 2050, according to OECD, are likely to have noticeable effects on the labor markets. In the short term, however, the consequences are expected to be limited. Many jobs will disappear in CO2-intensive industries. On the other hand, new positions will be created in climate-friendly sectors, which will bring changes for many employees.
The OECD study highlights the robust performance of labor markets in industrialized countries over the past few years, with significant improvements in employment situations for women compared to pre-pandemic levels. Despite rising real wages in most OECD countries, they haven't yet reached their 2019 levels, suggesting potential for wage increases in various industries without triggering a wage-price spiral. Additionally, the study acknowledges that the OECD nations' plans to achieve carbon neutrality by 2050 may impact labor markets, although the initial effects could be minimal, with some jobs being lost in CO2-intensive industries while new opportunities emerge in climate-friendly sectors.
