OECD Employment and Labour Force Participation Rates Reach Record Highs in Q2 2024, with Stable Unemployment at 4.9%

OECD employment and labour force participation rates remained broadly stable at 70.2% and 74% in the second quarter of 2024, the highest levels recorded since 2005 and 2008 respectively (Figure 1). Both indicators were at or near their record highs in 13 of the 38 OECD countries, including France, Germany, Japan, and Mexico.

The employment rate was above the OECD average of 70.2%, in two-thirds of OECD countries, while rates were particularly low in Mexico and Türkiye. The latter remained the OECD country with the lowest employment rate, at 55.1%, which was nevertheless its record high. The employment rate rose in 18 OECD countries compared with the previous quarter, with the largest increases observed in Estonia, Greece, and Iceland. The employment rate fell in 5 OECD countries, with the largest declines recorded in Costa Rica, Finland, and Slovenia.

In the second quarter of 2024, the OECD labour force participation rate of workers aged 15 to 64 reached its highest level at 74% with record highs of 67.1% for women and of 81% for men. Labour force participation rate was stable in 20 OECD countries, increased in 15 and decreased in Italy, Poland, and Slovenia.

In August 2024, the unemployment rate held steady at 4.9% in the OECD area, having been at or below 5.0% since April 2022. The unemployment rate remained at record lows in the European Union (5.9%) and the euro area (6.4%). It was unchanged in 21 OECD countries with available data for August, while 4 countries recorded increases, and another 6 countries registered drops (Table 3). Data for September 2024 shows that the unemployment rate was broadly stable at 4.1% in the United States, 0.4 percentage point (p.p.) higher than in January 2024. Nevertheless, the OECD youth unemployment rate (workers aged 15-24) peaked at 11.4% in August 2024, 0.2 p.p. higher than in July, with increases exceeding 1.0 p.p. in Austria and Lithuania.