Automation, digitalisation and the green transition create challenges but also new opportunities for local labour markets. Across the OECD, there is increasing labour market polarisation with a decline in the demand for middle-skilled workers and an increase in the demand for high- and low-skilled workers. At the local level, these trends have an uneven impact across regions. While some places are experiencing significant job losses and transformations, others are characterised by innovation and growth, resulting in the creation of new types of jobs. In both cases, new and different skill sets are required. With the COVID-19 crisis, many of the ongoing labour market changes are accelerating.
Local Employment Policies
Local employment systems offer efficient matching of employers and workers at the local level. In our work, we review how employment systems can be best geared to local needs through active labour market policies sensitive to local needs and their integration with other local services.