Employment rates are a measure of the extent of utilisation of available labour resources. In the short term, these rates are sensitive to the economic cycle, but in the longer term they are significantly affected by government policies with regard to higher education and income support and by policies that facilitate employment of women.

Labour markets differ in how they allocate employment opportunities among people of different ages. Employment rates for people of different ages are significantly affected by government policies with regard to higher education, pensions and retirement age.

Opportunities for part-time work are especially important for people whose family obligations prevent them from working full-time, such as women with young children and those caring for elderly relatives. Indeed, recent surveys in a large number of OECD countries show that most people who work part-time do so from choice. This suggests that countries with little part-time employment could foster increased employment by policies that promote the availability of part-time jobs.

Self-employment may be seen either as a survival strategy for those who cannot find any other means of earning an income or as evidence of entrepreneurial spirit and a desire to be one’s own boss. The self-employment rates shown here reflect these various motives.

Inequalities in economic performance across regions partly reflect the extent to which each region is able to utilise its available labour resources, and especially to increase job opportunities for under-represented groups.

Lower hours worked is one of the forms in which the benefits of productivity growth have been shared by people. In recent years, governments of several OECD countries have also pursued policies to make it easier for parents to reconcile work and family life, and some of these policies have tended to reduce working time.

The unemployment rate is one measure of the extent of labour market slack, as well as being an important indicator of economic and social well-being. Breakdowns of unemployment by gender show how certain groups are faring compared to others and to the overall population.

Long-term unemployment is of particular concern to the people affected and to policy makers. Quite apart from the mental stress caused to the unemployed and their families, high rates of long-term unemployment indicate that labour markets are operating inefficiently. In countries that pay generous unemployment benefits, the existence of long-term unemployment is also a significant burden on government finances.

Unemployment rates vary significantly among countries but large international differences hide even larger differences among regions within each country.

Young people who are neither in employment nor in education and training are at risk of becoming socially excluded – individuals with income below the poverty-line and lacking the skills to improve their economic situation.