OECD-wide employment expected to grow by 0.3% in 2026, 0.6% in 2027

OECD-wide unemployment rate stood at 4.9% in May 2026.

OECD job markets have remained resilient, with total employment in OECD countries at an all-time high and projected to continue to grow this year and next. However, real wages remain below their levels five years ago in around one-third of OECD countries, and this year’s energy shock is expected to put further pressure on wages, according to a new OECD report.

The OECD Employment Outlook 2026 reports that OECD-wide employment, which reached 670 million in May 2026 – up by about 26% since 2001 – is expected to grow by 0.3% in 2026 and 0.6% in 2027. Having been at or below 5.0% for more than four years, the OECD-wide unemployment rate stood at 4.9% in May 2026 and is projected to remain near this low level through 2027.

“OECD labour markets have been strong and resilient – employment is at record highs and unemployment rates are near historic lows,” OECD Secretary-General Mathias Cormann said. “But workers’ purchasing power is not keeping up. The answer is boosting labour productivity with better education policies, adult learning options, job mobility and technology adoption.”

The report shows that trade and technological change affect local labour markets very differently depending on their industrial structure. While structural change ultimately supports net job creation overall, adjustment occurs mainly through people entering and leaving employment rather than moving across sectors or regions, leaving some workers and communities facing persistent challenges.

© ZAWYA