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Labor market resilience is highest in Western and Northern Europe, according to global strategy and public policy consultancy Whiteshield, which released its 2023 Global Labor Resilience Index (GLRI) on the sidelines of the World Government Summit.
The ten most resilient countries are advanced economies that have the capacity to take policy measures quickly and effectively to prevent labor market outcomes that are much worse than expected. European and Asian countries are becoming more resilient, while North American resilience is high but stagnant. However, other countries are regressing, with only high-income countries at all income levels showing increased resilience.
According to the report, the global labor market recovery has been uneven, with some countries – mainly developed countries – rapidly returning to pre-crisis employment levels, while others – mainly developing countries – still suffer relatively large and sustained employment deficit.
labor market asymmetry
These asymmetric labor market outcomes can partly be attributed to different health and economic support measures introduced by governments. Another part is attributable to structural factors that facilitate or impede recovery.
The report also found that demand for high-skilled workers has increased during the Covid-19 pandemic at the expense of middle-skilled jobs. This is an ongoing global trend that already affects 95 of the 136 countries covered by GLRI. This trend is more pronounced in countries with higher labor market elasticity.
Top-performing countries have successfully equipped their workforces with the right skills and capabilities. This improvement needs to be sustained, especially in light of growing challenges such as skills shortages. In contrast, low-performing countries are witnessing a shift from high-skill and middle-skill jobs to low-skill jobs.
This points to the need for policies to address structural changes in the economy before low- and medium-skilled workers continue to face unemployment, the report added.
citizen-centric
The report notes that traditional approaches to policymaking, which isolate the individuals they intend to affect, have limited impact on building resilient markets. Instead, citizen-centricity must be embedded by design. To that end, Whiteshield has launched its Labor Navigator tool, which helps identify the latest trends in the labor market.
Fadi Farra, Founder and Partner at Whiteshield highlights: “Countries have been making enormous efforts to gain semblance in their labor markets in the wake of the pandemic. Numerous crises. Given this, regular reviews of skills and assessments of the relationship between skills development, employment support, the labor market and the economy have been undertaken relatively frequently. As the world recovers from the or short-term solutions into structural reforms. By doing so, the system will be more resilient to future disruptions.”
Sir Christopher Pissarides, Nobel Laureate in Economics, Whiteshield Special Advisor and Director, said: “GLRI assesses labor markets in countries and provides insights and guidance to enhance resilience. recovery, but there are still areas to work on and other challenges to mitigate. There is a need for governments, employers and workers’ organizations to work together to address these challenges. There is a need for collaboration between the public and business The long-term impact of any turmoil in the market, that’s a major priority.”
limit volatility
The index is a first-of-its-kind measure to assess an economy’s ability to limit fluctuations in employment and bounce back quickly from setbacks. The index ranks 136 countries on the resilience of labor markets, policies and key capacities to respond to crises such as pandemics, technological disruption and the transition to a green economy.
The report is published in partnership with CEMS, the global alliance for management education, comprising leading business schools, multinational corporations and NGOs, which jointly offer the CEMS Master in International Management programme. GLRI is an annual report that ranks countries according to the resilience of their labor markets and provides guidance on strengthening their labor markets. — trade arab news agency
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