Closing the Skills Gap Crucial to the Business Community: OECD Employment Outlook 2026

The OECD Employment Outlook 2026 examines the latest labour market developments across OECD countries, finding that labour markets remain resilient, with employment and labour force participation at record highs, despite emerging signs of weakening, including rising unemployment, slower job growth and persistent structural labour shortages. The report explores geographic disparities in labour market outcomes, the impact of structural change, returns to skills and training, and recent trends in employment protection legislation. It highlights key challenges such as demographic pressures, skills mismatches, participation gaps and the growing demand for AI-related skills. The report also calls for strong collaboration between governments and businesses, including through employer-led and government-supported training and re-skilling, more responsive, and flexible labour market regulation, and targeted place-based industrial and regional policies.

Bettina Schaller, Chair of Business at OECD's Employment, Labour, and Social Affairs Committee stated: “Signs of emerging weaknesses in labour markets re-inforce the need to double down on addressing structural pressures holding back growth and job creation. For businesses, more than ever, closing skills gaps through targeted training, re-skilling and up-skilling programmes, and enabling more flexible and predictable labour market frameworks are critical to sustaining competitiveness and supporting the transitions ahead".

Read the OECD's publication here: https://www.oecd.org/en/publications/oecd-employment-outlook-2026_7e710f54-en.html