EMPLOYMENT Employment & Labour Markets

Persistent unemployment may reflect either a general problem of growth and development or a structural problem of labour market inequality. The current employment problems in East Asia derive in the first place from macroeconomic reversals, while sluggish employment growth in Europe over the last two decades can largely be traced to poor aggregate economic performance. But growth is only part of the story. Structural inequalities are just as significant. Even in the most successful economies, production systems include some and exclude others. Workers with the right qualifications and capabilities get access to productive, remunerative jobs, while others find that good jobs are permanently out of reach. Therefore, employment policy is important for income distribution.

The other major factor driving employment trends is the transformation of production systems and labour markets. Growing pressure in favour of adaptability from both enterprises and workers is changing the rules of job creation. Many sectors have been radically affected by globalization, with different stages of production scattered across countries and suppliers. A new wave of information and communication technologies is reshaping the way some people work and live, creating new, geographically dispersed occupations and destroying others. Knowledge and continuous learning are increasingly seen as the key to business success.