18 trade & finance
Labour activation , equity and inclusion
Photo : OECD
Angel Gurría , Secretary-General of the OECD
Never has it been more important for the G20 Labour and Employment Ministers to come together to address the challenges facing the global economy .
According to our Employment Outlook , unemployment is set to remain high in the OECD area , around 8 % well into 2014 , not very far from the peak reached at the depth of the crisis in 2009 . But there are also growing disparities across countries ; while unemployment is gradually declining in the United States , Mexico and Japan , it is increasing in the Euro area . In emerging economies , tackling low paid employment in insecure jobs with little social protection remains a key challenge .
The impact of the crisis has been extremely harsh for youth . In fact , youth unemployment has risen to alarming levels : exceeding 60 % in Greece , 55 % in Spain , 52 % in South Africa and approaching 40 % in countries like Italy . To compound things further , as countries shift their fiscal stance from stimulus to tackling unprecedented deficits , pressure on social spending continues to increase further .
Declining job prospects , rising unemployment , diminished social spending and rising inequalities - never has your role as Labour and Employment Ministers been so important to promote inclusive growth and jobs .
In the context of this session on “ Labour Activation , Equity And Inclusion ” I would like to share with you the OECD ’ s assessment of the urgent need to address some key labour market challenges .
High unemployment cannot be addressed without a return to sustained growth
Macroeconomic policies – supportive monetary policy , fiscal consolidation , and banking sector reform – remain vital . These must be complemented by a broad range of structural reforms .
Increasing competition and productivity through product market reforms and labour market reforms is essential to deliver more and better jobs . The OECD was called on by the G20 Leaders to monitor progress with structural commitments under the Framework for Strong , Sustainable and Balanced Growth . It is crucial that employment measures have a central role in this process and that you , as Labour and Employment Ministers , be closely involved .
Macroeconomic and structural policies are just two key parts of the solution to re-ignite and strengthen economic growth and job creation .
Activation strategies for stronger and more inclusive labour markets
At the same time , the OECD ’ s background report on “ Activation Strategies for Stronger and more Inclusive Labour Markets in G20 Countries ”, highlights the critical role of activation policies in all G20 countries to build more inclusive labour markets . This can be achieved by taking action now to help youth and the long‐term unemployed get ( back ) to employment quickly and to strengthen the labour market attachment of other groups that face significant employment barriers , such as women , migrants , the disabled and older workers .
The objective of these policies is to complement short-term policies to promote job creation and economic growth . But there are significant longterm gains to be achieved , which can be visible in lowered poverty and strengthened well-being , reduced economic and social inequalities and ultimately stronger , more resilient , economies and labour markets .
There is no ‘ magic formula ’ for designing effective activation policies conducive to more inclusive labour markets
Based on the wide range of experiences and good practices reviewed , there are three key areas where lessons can be learned from G20 countries in developing and implementing activation strategies :
First , a comprehensive strategy along various lines of action , carefully tailored to each country ’ s circumstances , is required . The responsiveness and effectiveness of activation policies have , in many countries , been improved by overarching institutional reforms to improve coordination and coherence in the provision and delivery of both social protection measures and employment services .