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This report was presented to the Working Party on the Information Economy (WPIE) in December 2004. It provides an overview of information and communications technology (ICT) skills and employment across OECD economies and analyses some of the impacts on economic performance. It describes a new approach to identifying the diffusion of ICTs in the economy. Two measures of ICT-skilled employment are developed. The first is a narrow measure that uses occupational data to identify ICT specialists (e.g. programmers, software developers but also cable layers). The second is a broad measure that includes those who intensively use ICTs to perform their work (both basic and advanced intensive users), as well as the specialists. These measures are calculated for the economy as a whole and also by sector. The report provides a brief review of earlier attempts to identify the presence of ICTs in the economy and describes a new measurement approach developed for the 2004 ‘OECD information technology outlook’, which attempts to capture the diffusion of ICTs throughout the economy based on the degree of their actual use. The industry rankings based on the share of ICT-skilled employment in total employment are then compared to the results of other studies that classify industrial sectors on the basis of ICT usage. Some preliminary results from the analysis relating the ICT skills measures to productivity measures are presented. The report has expanded the analysis of ICT-skilled employment from the 2004 ‘OECD information technology outlook’ and extended it to include Canada. The analysis revealed that the narrow measure of ICT specialists followed a similar pattern across countries (European Union (EU)15, US, Canada and Australia), but that the trends for broad measure of ICT-intensive users and specialists diverged. The share of broad ICTskilled employment is increasing in the EU15, but decreasing in the US, Canada and Australia. The broad ICT-skilled employment measure was also analysed at the sectoral level. Findings reveal that many business services sectors have a very large share of ICT-skilled employment (e.g. computer and related services, financial intermediation services, and research and development), as well as certain manufacturing sectors (such as manufacturing of office machinery and computers). Personal services tended to have a relatively low share. Most sectors were found to have increased their share of ICT-skilled employment somewhat, particularly those that already had a relatively large share. Show less

The OECD annual report on jobs and employment in OECD countries reviews recent trends, policy developments, and prospects. The 2021 edition of the OECD Employment Outlook [available in VOCEDplus at TD/TNC 145.163] focusses on the labour market implications of the [Coronavirus Disease 2019] COVID-19 crisis. Country notes are available for Australia, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States.

In some countries, employers used job retention programmes to cut hours while allowing workers to keep their pay and jobs; there, it is likely that the full impact of the pandemic is yet to be felt. In others, there have been unprecedented increases in unemployment, but many workers will return to their jobs (or to new ones) as economies re-open and activity picks up.

The initial impact of the COVID-19 crisis was relatively modest in Korea due to the fast and widespread campaign of test, tracking and tracing that contributed to contain the spread of the virus. The unemployment rate in Korea started to rise from 3.4 per cent in February 2020 and reached 5.4 per cent in January 2021 due to enhanced distancing measures at the end of 2020. After that, it gradually declined to 3.8 per cent by May 2021. In Korea, the COVID-19 pandemic has had a greater impact on vulnerable groups, such as non-regular workers and young people. In 2020, the number of temporary and daily workers decreased by 6.5 per cent and 7.1 per cent respectively, while the number of regular workers increased by 2.1 per cent. The employment rate for young people (aged 15-29) also fell in 2020 by 1.3 percentage points compared to the previous year, showing the largest decline among all age groups.

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This brief paper notes that one-third of the population of OECD countries hold an upper secondary vocational education and training (VET) qualification as their highest educational attainment, and it is estimated that nearly half will graduate from a VET programme in their lifetime. However, keeping up with technology developments in industry can be a costly endeavour, although partnering with employers can help to spread the cost of VET programmes. While vocational qualifications offer young people a good chance of finding employment, they are sometimes seen as a second-class choice and limit their value in the labour market overall. Countries need to ensure their vocational programmes offer all students the basic skills they need in the labour market and in life, as well as the opportunity to progress on to tertiary education if they wish.

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This paper looks at a number of efficiency and equity aspects related to skill acquisition of young people and older adults. The results of this analysis suggest that such human capital investment is associated with valuable labour market gains for people, such as higher wages and enhanced employability, and that these gains exceed the original investment costs, mainly foregone earnings and tuition fees, by a significant margin. The analysis also indicates that the net benefits are strongly influenced by policy-related factors, such as study length, tuition subsidies and student support. Overall, the estimates suggest that there are strong incentives for the average student to continue their education past the compulsory schooling age, and highlight the benefits of such investment in education for society in general. However, the net gains fall with age, mainly as a result of a shorter period in which to take advantage of the benefits of education. In conclusion, the author points out that students in higher education tend to come from more affluent socio-economic backgrounds and that they benefit from large public subsidies. Young people from disadvantaged backgrounds, on the other hand, are less likely to participate in tertiary education and thus derive the benefit from public subsidies. Show less

The labour market outcomes for native- and foreign-born adults during the first year of the [Coronavirus Disease 2019] COVID-19 pandemic vary considerably across countries - with inequalities in employment even falling in some cases compared to 2017. In contrast with the 2008 financial crisis, greater educational attainment does not seem to have had a clear protective effect against labour market adversities during the pandemic. This is most likely due to countries' quick action to mitigate the economic impact of the pandemic and the high involvement of workers with low qualifications to maintain essential services during prolonged confinement periods. However, in some countries, inequalities in earnings were widening before the pandemic and unless appropriate measures are put in place, the economic effects of the current crisis may have a long-lasting negative effect on the integration of immigrants.

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The focus of this study is on the potential causes of skill mismatch, the extent of skill mismatch, the socio-demographic make-up of skill mismatch, and the consequences of skill mismatch in terms of earnings as well as employer sponsored adult education/training. A distinction is made between skill mismatch and education mismatch. The analysis is based on the 2003-2007 Adult Literacy and Lifeskills Survey (ALLS) - a dataset similar to the one that is forthcoming from the Programme for International Assessment of Adult Competencies (PIAAC) in 2013. These studies contain direct measures of key foundation skills as well as measures of the use of certain generic skills at work which allow for a direct measure of skill mismatch. The analysis points to the complex ways in which mismatch is generated and the need for an accurate and up to date measure of mismatch, one that reflects the possibilities for skill gain and skill loss over the lifespan, and reflects differences in the quality of qualifications. Two key findings stand out. First, including supply and demand characteristics in an earnings function reveals that labour demand characteristics are more important than labour supply characteristics in explaining earnings differentials. In other words, skills matter for earnings but only if they are required by the job. This has direct implications for understanding better the causes of mismatch on earnings. Second, the skill content of jobs seems to be an even stronger determinant of participation in employer supported adult education/training than educational attainment or literacy proficiency. The influence of demand characteristics thus tends to outweigh the influence of supply characteristics when employers make the decision to support adult education/training. Addressing mismatch thus requires a careful consideration of both the demand and supply sides of the labour market, so as to understand better the variety of factors which may have a negative impact on the effectiveness of skill formation, skill maintenance, and also skill use.

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This chapter examines the importance of local partnerships in securing the effectiveness of United Kingdom (UK) welfare-to-work policies and in particular of the New Deal program. It aims to be useful to those, in the UK and elsewhere in the Organisation for Economic Co-operation and Development (OECD), who are actively pursuing welfare-to-work policies which have a local design or delivery component. It outlines the nature of UK welfare-to-work programs, focusing on the New Deal and Employment Zones and assesses the importance of the local dimension in such policies and the need for local partnerships. In the main part of the chapter, key lessons are set out from local partnership practice and research, which can be used to inform partnership formation, management and development, together with their implications for welfare-to-work programs in the UK and other countries. The following two sections contain reflections on the UK New Deal local partnerships, based on their early experience so far and conclusions on the future development of welfare-to-work partnerships in the light of the issues discussed.

This publication is indexed at TD/INT 61.539. Show less

The OECD Local Economic and Employment Development (LEED) Programme has developed the OECD ‘Reviews on local job creation’ as an international cross-comparative study examining the contribution of local labour market policy to boosting quality employment and productivity. In Canada, the review has looked at the range of institutions and bodies involved in employment and skills policies. In-depth work was undertaken in Ontario and Quebec, looking at the Thunder Bay, Hamilton, Mauricie and Estrie regions.

The contents are as follows: Executive summary; Reader’s guide; Policy context for employment and skills in Canada; Ontario’s employment and skills system; Quebec’s employment and skills system; Overview of the Canadian case study areas; Local job creation dashboard findings in Canada; Towards an action plan for jobs in Canada: recommendations and best practices. Show less

The OECD annual report on jobs and employment in OECD countries reviews recent trends, policy developments, and prospects. The 2021 edition of the OECD Employment Outlook [available in VOCEDplus at TD/TNC 145.163] focusses on the labour market implications of the [Coronavirus Disease 2019] COVID-19 crisis. Country notes are available for Australia, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States.

In some countries, employers used job retention programmes to cut hours while allowing workers to keep their pay and jobs; there, it is likely that the full impact of the pandemic is yet to be felt. In others, there have been unprecedented increases in unemployment, but many workers will return to their jobs (or to new ones) as economies re-open and activity picks up.

Australia successfully ran a job retention scheme that helped support a large number of jobs during the COVID-19 crisis. By April/May 2020, 30.5 per cent of workers were employed on the scheme. Given the improvement of the health and economic situation, the scheme has now ended. Australia increased funding over four years to provide extra support to individuals affected by the crisis. In addition, it offered funding to enhance digital services for jobseekers to compensate for reduced in-person service. Additional training programmes were offered, training was moved online and training places were expanded to ensure individuals could continue to improve their skills in order to be ready for their next job.

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This report notes that Colombia has made major economic and social advances in recent years. The combination of strong economic growth and policies targeted at the most vulnerable groups improved considerably the living standards of the Colombian population. Today, the country enjoys higher employment and labour force participation rates than the average of OECD countries and unemployment is steadily declining. Nevertheless, despite these positive trends, deep structural problems remain. Labour informality is widespread, the rate of self-employment is high and many employees have non-regular contracts. Income inequality is higher than in any OECD country and redistribution through taxes and benefits is almost negligible. In addition, half a century of internal conflict and violence has displaced a significant part of the population, and many of them are living in extreme poverty. Despite considerable progress, violence continues to be a challenge and also affects trade union members and leaders.

The Colombian government has undertaken important reforms in recent years to address these labour market and social challenges, and the efforts are gradually paying off. However, further progress is needed to enhance the quality of jobs and well-being for all. The main thrust of this report is to support the Colombian government in tackling labour market duality, generate trust between the social partners, develop inclusive and active social policies, and get the most out of international migration. The contents are as follows: Strong growth but unequal Colombian society; Towards more equal job opportunities in Colombia; Enforcing labour rights in Colombia; Improving redistribution in Colombia through social policy; Making the most out of international migration for Colombia.

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