Reviving productivity growth and ensuring that productivity gains are broadly shared through higher wages and better employment opportunities are key to raising well‑being for all members of society. This chapter discusses the role of the labour market as an engine of a dynamic economy sustained by strong productivity growth whose benefits are shared with all workers through enhanced employment opportunities, higher wages and better working conditions.

This chapter presents the conceptual and operational framework of the new OECD Jobs Strategy for assessing labour market performance. The conceptual framework distinguishes between three outcome dimensions through which the labour market contributes to inclusive growth and well-being: i) the quantity and quality of jobs; ii) labour market inclusiveness; and iii) resilience and adaptability. The framework is operationalised by means of a dashboard that allows an easy comparison of labour market performance along these different dimensions and the identification of possible reform priorities.

This chapter provides an overview of the role of policies and institutions for good labour market performance. The discussion is organised according to the three principal dimensions of the new Jobs Strategy framework: i) job quantity and quality; ii) labour market inclusiveness; and iii) resilience and adaptability. A more detailed discussion and the supporting evidence are presented in Parts II to IV of this Volume.

To provide more concrete support for countries it is important to accompany the general policy principles of the new Jobs Strategy with concrete guidance for: i) identifying reform priorities and developing country-specific recommendations; ii) building support for successful reforms and iii) evaluating the effectiveness of reforms. These issues are developed in more detail in Part V of the Volume.

This chapter contains the detailed policy recommendations of the new OECD Jobs Strategy. These policy recommendations are organised around three broad principles: i) promote an environment in which high-quality jobs can flourish; ii) prevent labour market exclusion and protect individuals against labour market risks; and iii) prepare for future opportunities and challenges in a rapidly changing labour market. The chapter ends with recommendations on the implementation of reforms, in order to provide countries guidance in building stronger and more inclusive labour markets.