Deterioration of wages in the world of lost productivity: OECD – The Financial

The labor markets recover from the crisis, but wage growth remains weak due to loss of productivity. The deterioration in the industries of manufacturing and construction led workers to relocate in the service sector, where their work do not match their skills and get paid less, exposes the Employment Outlook OECD 2016

“the work to stanch the labor market is only half: back to work, but without a weight in my pocket. an action in a comprehensive and ambitious public policy is needed to revive growth in labor productivity, increase wages and reduce the growing inequalities in the labor market, “said Angel Gurria , Secretary General of the OECD, the present the report in Paris, before the meeting next week of ministers of labor and Employment of the G20, in Beijing, China.

the percentage of people aged 15 to 74 years working in countries OECD will be 61 percent by the end of next year, just above the level recorded at the end of 2007.

in some OECD countries, especially in Chile , Germany and Turkey , employment rates already exceed pre-crisis levels, while the disparity in jobs continues being large in some European countries, particularly Greece , Ireland and Spain (with 9.0, 7.9 and 8.5 percentage points respectively).

the wage growth is still being held in many countries, the report said. The productivity growth stagnated in recent years and many of the workers who lost their jobs in manufacturing and construction during the crisis they recovered in the service sector.

real wages they fell sharply during the crisis in Greece, Ireland, Japan, Portugal, Spain and the Baltics.

When comparing the growth of real wages during the period 2000-2007 with the period 2008-2015, some other countries including the Czech Republic, Estonia, Latvia and the UK experienced a sharp slowdown .

in 2015, real hourly wages in these countries were more than 25 percent below what they would have been if wage growth had continued at the pace observed during 2000-2007 and exceeded the wage gap 20 percent in Greece, Hungary and Ireland.

the secretary General of the OECD expressed concern about the quality of employment and, in particular, the situation of certain groups.

In the OECD rate of youth who are neither in employment nor in education, so-called ‘ ninis’ , remained higher in 2015 with a rate of 15 percent in 2007 when it was 13.5 percent, with a significant increase in many countries. Gender gaps in the labor market are still maintained and working women continue to get worse jobs than men.

Although unemployment will be reduced by the OECD to 6.1 percent at the end of 2017, 39 million people remain unemployed, 6.3 million more than before the crisis, according to estimates by the body.

a proper policy skills plays an important role in reducing inequalities in the labor market, while boosting the productivity and wages.

It is so important that educational programs be increased and vocational training and the quality thereof is improved. Using skills in employment is crucial because between equally skilled and educated workers, those who use their skills at work are more productive and earn higher wages.