The COVID-19 pandemic has triggered one of the worst job crises since the Great Depression.
OECD feels there is a real danger that the crisis will increase poverty and widen inequalities, with the impact felt for years to come.
“Countries need to do everything they can to stop this job crisis from turning a social crisis. Reconstructing a better and more resilient labour market is an essential investment in the future and in future generations.”
In this perspective, OECD issued an updated employment outlook focusing on the ways and means to face the job crisis.
- In addition to defining appropriate practices in government guidance, laws, and regulation, firms will require support to implement workplace health and safety practices (for example, via tax credits).
- More generally, however, extraordinary paid sick-leave entitlementsshould be keptin place and extendedto groups of workers who are not covered.
- Connecting workers on sick leave with occupational rehabilitation and employment services will be critical to prevent long-term labour market exit.
- Job retention schemes should be adapted with caution, in line with evolving economic and health conditions, and the sector-specific consequences. To do this, governments have a number of policy levers that they can employ: Require firms to bear part of the costs of STW schemes/ Time-bound but evolving support given specific circumstances/ Promote the mobility of workers from subsidised to unsubsidised jobs/ Promote participation in training while on reduced working hours
- Ensuring adequate income protection
- Expanding employment services and training
- Giving young people the support they need: support companies who offer jobs or work experience to young people have proven an effective tool to promote job creation in times of crisis/ Effective outreach strategies are crucial to re-establish contact with young people who recently lost their jobs or left school without finding employment.