The OECD Employment Outlook, a review of labour market trends and issues predicts some reduction in unemployment rates over the next two years. But the organisation urges governments to avoid taking too narrow an approach to job creation and to consider wider economic and social objectives as well.
The OECD figures show that the UK works an average 100 hours a year more than workers in the rest of the European Union and its employees have the least protection in the developed world except for the United States. The OECD warns that efforts to drive more people into work may simply lead to the creation of short-term, insecure jobs.
As a general rule, the OECD report notes, an effective policy to meet both employment and social objectives involves a modest degree of employment protection regulation combined with services that help new workers into employment by making them more attractive to employers. This requires a "mutual obligations" approach, whereby welfare recipients are offered counselling, job-search support and other re-employment services: as a counterpart to continued benefit support, individuals must look actively for a job or take steps to improve their employability.
The OECD identifies 3 policy options for governments:
Greater "flexibility" in working time as a way of boosting employment. Part-time work options can help families adjust to childrcare responsibilities and allow older workers to enter and remain in the workforce.
Improved regulation and government administration to beat the "informal" economy and undeclared employment. Well functioning tax and labour inspectorates are needed as well as social protection and employment promotion schemes should reach the really needy, even when they are employed in the informal economy.
Support for lifelong learning to help workers to improve their skills. In the past 20 years, the income gap has increased between workers with different skill levels. Training that improves professional skills can help employees to retain their jobs.
