Labour market facts and trends

Indonesia’s labour market absorbed over 50 million additional workers between 2001 and 2024, while unemployment fell from 8% to under 5%. Yet job quality has not kept pace. Structural transformation, the movement of workers out of agriculture, has largely bypassed manufacturing and channeled labour into low-value-added services; 58% of workers remain informal; median earnings stand roughly 40% below the average minimum wage, even though more than a quarter of the workforce works over 48 hours per week; and female labour force participation trails male participation by 28 percentage points. These four interconnected features define Indonesia’s labour market challenge.

Argentina’s labour market experienced two sharply contrasting periods. The first, between 2003 and 2012, was characterized by falling unemployment, rising real wages, declining inequality, and improvements in formal employment. The second was marked by prolonged macroeconomic instability, stagnant productivity, and deteriorating labour market conditions. Despite relatively low unemployment rates, real wages collapsed, informality remained persistently high, and a growing share of workers became poor despite being employed. At the same time, human capital accumulation among younger cohorts has weakened significantly. Argentina's labour market challenge is no longer primarily one of unemployment but of job quality.

Czechia’s labour market has undergone a remarkable transformation over the past two decades. Unemployment has fallen sharply, while employment has steadily increased and continues to be among the highest levels across OECD countries. At the same time, rising real wages have not fully closed the gap with the OECD average, and the minimum wage remains relatively low compared to other countries. Gender gaps in employment and unemployment have narrowed, yet a substantial gender pay gap remains, highlighting persistent inequalities in the labour market.

Israel entered the 2020s with a strong labour market, following more than a decade of rising employment, falling unemployment, and sustained wage gains, a resilience striking given repeated security shocks. Despite the Covid-19 pandemic and the 2023–24 war, aggregate indicators returned relatively quickly towards pre-shock paths. Yet large and persistent gaps in employment and earnings remain, particularly among Arab Israelis and Ultra-Orthodox Jews. With the Ultra-Orthodox share of the working-age population growing rapidly, the stakes of closing these gaps are rising.   

Since 1991 the Australian economy has experienced sustained growth. Aided by the commodities boom and strong public finances, the Australian economy negotiated the global financial crisis without falling into recession. However, the dislocation associated with the Covid-19 pandemic saw the economy enter recession in 2020, before sharply rebounding. Since 2022, unemployment and real weekly earnings have returned to pre-Covid-19 levels but more recently real wages have slipped due to high inflation. Further recent headwinds include a rise in long-term unemployment, deteriorating youth labour market, and a stagnant gender earnings gap.

Greece’s labour market tells a mixed story. After one of the deepest crises in Europe, unemployment has fallen and employment has recovered, yet many problems remain. Long-term unemployment is still high, real wages have not fully regained their purchasing power, and most jobs are in small firms with limited growth prospects. At the same time, major reforms changed how wages are set, reducing collective bargaining and making the minimum wage the main pay floor for many workers. This raises an important question: has the Greek labour market truly recovered, or has it settled into a new and more fragile balance? Understanding this is key for designing policies that support stable jobs, fair pay, and inclusive growth in the future.