SDG 8: Decent Work and Economic Growth
Institutions: Ministry of Labour & Employment; Ministry of Social Justice & Empowerment
The report finds that OECD labour markets remain resilient: unemployment is stable at 4.9% in May 2025, while employment and participation rates hit record highs - 72.1% and 76.6%, respectively. Real wages are rising in nearly all member countries, though in many they are yet to reclaim pre-2021 levels. However, the outlook warns of slowing momentum: employment growth is decelerating, and tightness in labour markets is easing, returning to pre-COVID levels.
Critically, population ageing is exerting pressure on economic growth. The old-age dependency ratio has risen from 19% in 1980 to 31% in 2023 and is projected to reach 52% by 2060. Without policy intervention, shrinking working-age populations could slow GDP per capita growth by about 40% - from 1% annually (2006-19) to 0.6% in 2024-60.
The report highlights the opportunity in mobilising untapped labour reserves - especially among older workers and women - to offset growth declines. Reducing older-worker exit rates to match the lowest OECD levels could boost annual GDP growth by around 0.2 percentage points; similar gains could follow from closing gender employment gaps.
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