G20 labour markets: outlook, key challenges and policy responses

In the face of below trend growth and large jobs gaps, G20 Leaders have called for each G20 country to develop growth strategies and employment action plans. The Leaders have emphasized the need for coordinated and integrated public policies, including strong and supportive macroeconomic, trade, investment and labour market policies, along with resilient and effective social protection systems, sustainable public finance and well-regulated financial systems. Coordinated policies in these areas are seen as the foundation for sustainable, job-creating economic growth.

This paper reviews the latest trends in the labour market and highlights policies adopted by G20 countries to support growth. It then sets out the main channels through which growth and employment affect each other and summarizes the mix of policy measures needed to achieve strong, sustainable, job-rich and balanced growth. A brief overview of the Employment Plans submitted by G20 countries is also provided. A statistical annex presents additional information on recent labour market trends.