Employment across OECD countries reached a record high in the second quarter of 2026, but the latest figures point to a labour market moving only slowly overall and a widening gap between younger and older workers.
The employment rate for people aged 15 to 64 stood at 70.4 per cent, while the labour-force participation rate reached 74.2 per cent. Both were at record levels, yet their quarter-on-quarter increases were no greater than 0.1 percentage point. Compared with the same quarter a year earlier, the rates were broadly unchanged.
The figures were published in a statistical update on 15 October. The employment rate measures the share of the working-age population in work. Participation also includes people who are unemployed but available for and seeking work. Neither measure alone captures hours worked, job security or pay.
Different national directions
The aggregate conceals marked differences between countries. Employment rates ranged from 54.8 per cent in Türkiye to more than 80 per cent in Iceland, Japan and the Netherlands. Nine OECD countries were at or near their own employment-rate records; the equivalent number for labour-force participation was 13.
Compared with a year earlier, Colombia recorded the largest rise in employment, up 1.5 percentage points, followed by Portugal at 1.3 points. In both cases the increase reflected a combination of higher participation and lower unemployment. Iceland’s employment rate fell by 3.3 points and Finland’s by 1.1 points, with higher unemployment identified as the main factor in those declines.
Women’s employment and participation rates each rose by 0.2 percentage points during the quarter, while the rates for men were broadly stable. Among people aged 55 to 64, employment increased by 0.4 points and participation by 0.2 points. The corresponding measures changed little for people aged 25 to 54 and those aged 15 to 24.
Youth unemployment edges higher
Monthly data show a less favourable picture for young people. The overall OECD unemployment rate was 5.0 per cent in August, broadly stable and 0.2 percentage points above its record low in June 2023. The rate for people aged 15 to 24 rose from 11.0 per cent in July to 11.3 per cent in August. For people aged 25 and over it remained at 4.2 per cent.
Unemployment was largely unchanged in 20 member countries, as well as in the European Union and euro area. It increased in seven countries, most notably Colombia, while decreases were recorded in Denmark, Finland, Greece, Israel and Türkiye. The figures are seasonally adjusted and combine quarterly employment and participation estimates with monthly unemployment data, so the periods should not be treated as simultaneous snapshots.
The release therefore describes a record aggregate employment level, not a broad surge in hiring: quarter-on-quarter changes were small, and rates varied considerably by country and age. The higher youth unemployment figure is a one-month comparison and does not by itself establish a longer-term trend. September estimates available in the release covered Canada and the United States only; both were described as broadly stable.
