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People with disability face persisting difficulties in the labour market. There are concerns that AI, if managed poorly, could further exacerbate these challenges. Yet, AI also has the potential to create more inclusive and accommodating environments and might help remove some of the barriers faced by people with disability in the labour market. Building on interviews with more than 70 stakeholders, this report explores the potential of AI to foster employment for people with disability, accounting for both the transformative possibilities of AI-powered solutions and the risks attached to the increased use of AI for people with disability. It also identifies obstacles hindering the use of AI and discusses what governments could do to avoid the risks and seize the opportunities of using AI to support people with disability in the labour market.

Two out of five OECD countries contract out some of the job brokerage and counselling functions of publicly financed employment services using outcome-based payment models. This paper examines several important aspects related to the design and implementation of such outsourcing. First, innovative payment models can improve incentives for external providers to offer training and more effective services for hard-to-place clients. Second, providing forward guidance to providers and accounting for contingencies can mitigate their risks, e.g. of being underpaid relative to expenses incurred, thus lowering service costs. Third, letting individuals choose a provider can result in services that are better tailored and foster ongoing competition between providers. Finally, automating data exchange can, somewhat paradoxically, improve data privacy and data protection while enabling new payment models. These and related findings are discussed with country examples based on desk research and interviews with stakeholders in several OECD countries. The paper builds on work conducted in the project 'Reforming the Swedish Public Employment Service', which was carried out with funding from the European Union via the Technical Support Instrument and was implemented by the OECD in cooperation with the European Commission's Directorate-General for Structural Reform Support.

Long-term unemployment remains a structural challenge for most OECD countries. Despite major efforts to address this issue, the efficiency and effectiveness of many existing active labour market policies are limited for jobseekers who face major vulnerabilities and have no ties to the labour market. Therefore, there is a need for innovative approaches that specifically address the barriers faced by long-term unemployed individuals in their labour market (re)integration. This paper discusses examples of promising practices from across Europe, which can serve as a source of inspiration for policymakers seeking new approaches to assist vulnerable jobseekers in overcoming the challenge of long-term unemployment.

The COVID-19 pandemic had a severe impact on the Umbrian economy, and despite recovery of labour demand, the region faces challenges related to digitalisation, tight labour markets, and volatile demand for low-skilled jobs. To address these issues, the OECD and the Umbrian regional agency for active labour market policies (ARPAL) have collaborated to investigate the labour and skills demand of the region using big data techniques applied to online job postings. This report provides new insights into the alignment between labour and skills demand and the training options available in the training and education programmes contained in the Umbrian Regional Training Catalogue. This report builds new indicators to measure the alignment of course content with employer demands in Umbria, with results showing that alignment is relatively good for some occupations but that this can be strengthened to provide job seekers with up-to-date training options that match the demand of the labour market.

This paper examines the experiences of self-employed online freelancers working on digital labour platforms during the COVID-19 pandemic. It is based on interviews with freelancers and platform managers and experts in Belgium, France, Italy, the Netherlands and Poland. Their experiences during COVID-19 reveal issues of asymmetric power vis-à-vis platforms. Notably, they reported lack of transparency and certainty in their contracts with platforms, lack of power in negotiating with clients, and limited ability to engage with clients on other platforms. In addition, they often experienced difficulties in accessing government temporary supports for businesses during the pandemic. The paper puts forward policy recommendations to address these issues.

The green transformation of the economy is expected to lead to a sharp reduction in employment in carbon-intensive industries. For designing policies to support displaced workers, it is crucial to better understand the cost of job loss, whether there are specific effects of being displaced from a carbon-intensive sector and which workers are most at risk. By using German administrative labour market data and focusing on mass layoff events, we estimate the cost of involuntary job displacement for workers in high carbon-intensity sectors and compare it with the displacement costs for workers in low carbon-intensity sectors. We find that displaced workers from high carbon-intensity sectors have, on average, higher earnings losses and face stronger difficulties in finding a new job and recovering their earnings. Our results indicate that this is mainly due to human capital specificity, the regional clustering of carbon-intensive activities and higher wage premia in carbon-intensive firms. Workers displaced in high carbon-intensity sectors are older, face higher local labour market concentration and have fewer outside options for finding jobs with similar skill requirements. They have a higher probability to switch occupations and sectors, move to occupations that are more different in terms of skill requirements compared to the pre-displacement job, and are more likely to change workplace districts after displacement. Women, older workers and those with vocational degrees as well as workers in East Germany, experience particularly high costs in case they are displaced from high carbon-intensity sectors.

The OECD AI Principles call for AI actors to be accountable for the proper functioning of their AI systems in accordance with their role, context, and ability to act. Likewise, the OECD Guidelines for Multinational Enterprises aim to minimise adverse impacts that may be associated with an enterprise’s operations, products and services. To develop ‘trustworthy’ and ‘responsible’ AI systems, there is a need to identify and manage AI risks. As calls for the development of accountability mechanisms and risk management frameworks continue to grow, interoperability would enhance efficiency and reduce enforcement and compliance costs. This report provides an analysis of the commonalities of AI risk management frameworks. It demonstrates that, while some elements may sometimes differ, all the risk management frameworks analysed follow a similar and sometimes functionally equivalent risk management process.

Skills are vital for building resilient economies and societies. By helping individuals develop a diverse range of skills and empowering them to apply these skills effectively, skills policies play a crucial role in responding to emerging threats, such as environmental degradation and harmful applications of technologies used to collect, generate, and exchange information. This edition of the Skills Outlook highlights the importance of supporting individuals in acquiring a wide range of skills, at varying levels of proficiency, to promote economic and social resilience. Additionally, the report acknowledges the role of attitudes and dispositions in enabling skills development and effective skills use. It also emphasises the need for policy makers to monitor the costs associated with policies aimed at promoting the green and digital transition, and how the transition affects inequalities. Training opportunities that respond to emerging labour market needs and efforts to facilitate their uptake can promote a just and inclusive green and digital transition. In turn, education systems that equip young people not only with skills but attitudes to manage change can ensure that the green and digital transition is sustainable in the longer term.

This report analyses the demand for positions that require skills needed to develop or work with AI systems across 14 OECD countries between 2019 and 2022. It finds that, despite rapid growth in the demand for AI skills, AI-related online vacancies comprised less than 1% of all job postings and were predominantly found in sectors such as ICT and Professional Services. Skills related to Machine Learning were the most sought after. The US-focused part of the study reveals a consistent demand for socio-emotional, foundational, and technical skills across all AI employers. However, leading firms – those who posted the most AI jobs – exhibited a higher demand for AI professionals combining technical expertise with leadership, innovation, and problem-solving skills, underscoring the importance of these competencies in the AI field.