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OECD Warns of Labor Shortages: Urgent Policy Reforms Needed

7/15/2025

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Summary

Story summary

The OECD's 2025 Employment Outlook highlights labor shortages and fiscal pressures due to aging populations in member countries.
By 2060, the working-age population could drop by 8%, raising public spending on pensions and health by 3% of GDP.
Recommendations include boosting migration, increasing women's workforce participation, and retaining older workers to address these challenges.
Australia’s heavy reliance on personal income tax sparks discussions on necessary tax reforms amid demographic shifts.
The OECD calls for ambitious policy reforms to improve job opportunities and productivity growth.

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Story summary

The OECD's 2025 Employment Outlook highlights labor shortages and fiscal pressures due to aging populations in member countries.
By 2060, the working-age population could drop by 8%, raising public spending on pensions and health by 3% of GDP.
Recommendations include boosting migration, increasing women's workforce participation, and retaining older workers to address these challenges.
Australia’s heavy reliance on personal income tax sparks discussions on necessary tax reforms amid demographic shifts.
The OECD calls for ambitious policy reforms to improve job opportunities and productivity growth.