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Employment is rising in OECD countries but most jobs continue to be created in relatively low-productivity, low-wage activities, says a new OECD report. The latest edition of the Compendium of Productivity Indicators says the trend has compounded the impact oLow-productivity jobs continue to drive employment growth
Employment is rising in OECD countries but most jobs continue to be created in relatively low-productivity, low-wage activities, says a new OECD report. The latest edition of the Compendium of Productivity Indicators says the trend has compounded the impact of generally weak business investment on productivity growth. The downward pressure on wages may have allowed firms to defer investment decisions, instead meeting increased demand by hiring additional staff and, in turn, undermining the potential for investment-driven productivity growth, the report says. In France, Germany and the United Kingdom, the top three sectors with the largest employment gains between 2010 and 2017 accounted for one-third of total job creation but paid below-average wages. Moreover, in Belgium, Finland, Italy and Spain, industries with above-average labour productivity levels saw net job losses. The data show wage growth (adjusted for inflation) improving in recent years but remaining below pre-crisis rates in two-thirds of OECD countries despite a period of negligible or slow wage growth, and earlier declines in purchasing power in the aftermath of the crisis. Indeed, real wages remain below crisis... Read more
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