The OECD’s 2026 Employment Outlook report highlights the impact of geography on employment opportunities, career progression and living standards, finding substantial regional disparities in employment, unemployment and disposable incomes across OECD countries.
The report shows that local labour markets are being reshaped by structural changes, including import competition from low-wage economies, digitalisation, artificial intelligence, the energy transition and demographic ageing. While regions often appear resilient in aggregate, the costs of adjustment fall unevenly on workers, with many displaced workers struggling to access new opportunities. The report argues for policies that reduce local vulnerabilities, anticipate evolving skills needs, foster industrial diversification and support workers transitioning into new jobs, while addressing barriers to mobility.
