Job markets remain resilient, with labour force participation reaching record highs in many OECD countries and unemployment at historically low levels. However, there are signs of a slowdown as geopolitical and trade policy uncertainties dampen economic activity, according to a new OECD report.
The OECD Employment Outlook 2025 reports that OECD-wide employment, which reached 668 million in May 2025 – up by about 26% since 2001 – is expected to grow by around 1.1% in 2025 and 0.7% in 2026. Having been at or below 5.0% for more than 3 years, the OECD-wide unemployment rate stood at 4.9% in May 2025 and is projected to remain near this low level through 2026. It was 0.5 percentage points higher for women than for men.
Gender gaps in employment and labour force participation are narrowing in many countries. Between the first quarter of 2024 and the first quarter of 2025, on average across OECD countries, the employment rate of women rose by around 0.2 percentage points more than that of men. The gender gap in the participation rate narrowed by 0.3 percentage points over the same period, largely driven by more women entering the labour force.
Real wages are growing across most of the OECD, but remain below the levels seen in early 2021, just before the post-pandemic inflation surge, in around half of countries. The wages of the lowest-paid workers have held up well, as the real statutory minimum wage has increased since then in nearly all the 30 OECD countries with a national minimum wage.
This year’s edition also includes new analysis on the significant impact that declining birth rates and increasing life expectancy across the OECD will have on economic growth and employment.
