Global Labour Resilience Index 2020

A resilient labour market is defined as one that generates sustainable demand for a wide range of occupations for most of the workforce and supplies workers with quality jobs. Resilient labour markets are inclusive, sustainable, and able to withstand shocks because of their flexibility and adaptability. Resilient labour markets matter more than ever for the stability and livelihood of citizens in a global context of increasing economic and social volatility.

The Global Labour Resilience Index 2020: focus on the geography of work

Where jobs are created matters just as much as what and how jobs are created, not only at the global level but also at the sub-national level, down to the level of regions and cities. National averages can mask substantial disparities at the sub-national level, which are at the heart of social discontent in countries worldwide. Witness the Gilet Jaune movement in France, the political divide between different communities in the United States and the UK, and social unrest across Latin America.

We need to rethink the social contract at the local level

In many communities and cities worldwide, the social contract has been fractured and needs to be repaired through more active citizen involvement. Citizens, firms and all key local stakeholders can help focus on the most pressing social and economic challenges, such as the future of work and contribute to developing the solutions through a series of creative engagement mechanisms (Chapter 2). The future is more local than ever. These are some reasons the Global Labour Resilience Index 2020 focuses on the geography of work, particularly on regions and cities.

Taking a comprehensive perspective on labour market resilience

The Global Labour Resilience Index assesses 145 countries and economies on the resilience of their labour markets based on 11 dimensions and 60 indicators from a wide range of international sources. Considering both longer-term structural factors – such as demographics, level of economic development and sophistication, economic diversification and inequality – as well as shorter-term policy factors – including education and skills, labour policy, innovation, entrepreneurship, technology and statistics – the GLRI identifies gaps to address to boost the resilience of labour markets and adapt to the changing world of work. By measuring the gap between structural and policy factors, the Index also highlights the labour resilience gap: identifying the countries that have the greatest potential to improve the resilience of their labour markets in the shorter-term GLRI results have a strong overall positive correlation with productivity (0.6). Moreover, there is a negative correlation between unemployment for OECD countries and some other country groups analyzed (greater than -0.4).