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 and disadvantaged groups.

Labour markets differ in how employment opportunities are allocated 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 who do not want to work full-time because of family circumstances, such as woman with young children and those caring for the elderly. Indeed, recent surveys in a large number of OECD countries show that most people who work part-time do so by 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. Hours worked is also one of the ways that labour markets adjust most intensively during business cycles. 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 women are faring compared to men.

Long-term unemployment is of particular concern to the people affected and to policy makers. Quite apart from the mental and material stress caused to the unemployed and their families, high rates of long-term unemployment indicate that labour markets are operating inefficiently.

The unemployment rate is an important indicator of economic and social well-being. Breakdowns by region show that large international differences hide even larger differences among regions within each country.