Country labor markets

Articles in this subject area summarize the current state of specific labor markets. They cover the labor market issues common to all countries but also highlight important developments specific to each country context.

  • The labor market in Switzerland, 2000–2016

    The Swiss labor market has proven resilient to several recent shocks, with unemployment remaining stable and real wages steadily increasing

    Switzerland is a small country with rich cultural and geographic diversity. The Swiss unemployment rate is low, at only about half the OECD average. The rate has remained at that level since the year 2000, despite a massive increase in the foreign labor force, the Great Recession, and a currency appreciation shock, demonstrating the Swiss labor market’s impressive resiliency. However, challenges do exist, particularly related to earnings and employment gaps among foreign and native workers, as well as a narrowing but persistent gender pay gap. Additionally, regional differences in unemployment are significant.
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  • The labor market in Spain, 2002–2016

    Youth and long-term unemployment, which skyrocketed during the Great Recession, were still very high in 2016

    Spain, the fourth largest eurozone economy, was hit particularly hard by the Great Recession, which made its chronic labor market problems more evident. Youth and long-term unemployment escalated during the crisis and, despite the ongoing recovery, in 2016 were still at unsustainably high levels. The aggregate rate of temporary employment declined during the recession, but grew among youth. Most interesting have been the narrowing of the gender gap in labor force participation, the decline in the share of immigrants in employment and the labor force, and the overall increase in wage inequality.
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  • The labor market in Italy, 2000–2016

    Italy has seen moderate recovery since the double-dip recession, but problems persist among the youth and in southern regions

    The Italian labor market suffered a sizable negative shock from the double-dip recession and has since experienced a moderate recovery beginning in 2014. Despite some improvement, unemployment remains higher than pre-crisis levels, especially for young workers. Female participation has been slowly increasing. Regional heterogeneity is still high, with the stagnating south unable to catch up with the north. Real earnings have been increasing, but productivity is stable at relatively low levels compared to other European countries. Finally, undeclared employment is high, especially in the south.
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  • The labor market in Austria, 2000–2016

    Fifteen years ago Austria was the “better Germany,” but it has failed to keep up over time

    René Böheim, December 2017
    Austria is an interesting economy due to its strong industrial relations with institutionalized collective bargaining over wage negotiations and working conditions. Currently, Austria’s GDP per capita is high, but unemployment, although comparably low on an international scale, is not declining in the aftermath of the financial crisis. The labor market is also characterized by an increasing share of mostly low-skilled foreign workers. High marginal labor taxes discourage low-skilled workers from leaving social assistance.
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