OECD Employment Outlook 2025 Highlights How Flexible Work Can Power up Multigenerational Labour Markets

The newly released OECD Employment Outlook 2025 places a spotlight on the transformative role of flexible forms of work to reflect the realities of labour markets characterised with a diverse and ageing workforce. Asking whether we can "(…) Get Through the Demographic Crunch?" the 2025 edition of the OECD Employment Outlook discusses the challenges posed by population ageing and analyses the consequences of an ageing workforce.

Integrating under-represented groups in the labour market will help offset ageing, the OECD reckons. From young professionals entering the workforce to older workers extending their careers and enticing women to work more, the report calls for inclusive, adaptive policies.

Navigating the Golden Years

The report analyses the employment landscape for older workers, examining trends in job quality, unemployment, and inactivity. The OECD emphasises that proactive measures-such as occupational health programmes, job redesign, and phased return-to-work initiatives-can help prevent early exits from the labour market. It also highlights the importance of effective workforce management, career guidance, access to lifelong learning, flexible work options and healthy working conditions as solutions to retain and empower older workers.

The World Employment Confederation has for long promoted flexible forms of work and career management services as a way to ensure older professionals remain active and valued contributors to the workforce while also addressing labour and skills shortages. Several WEC members have dedicated programmes and initiatives targeting workers aged over 50 years old.

Staying in the Game

As the pace of technological and economic change accelerates, the OECD Employment Outlook 2025 also explores how older workers can adapt their skills and remain competitive. Key recommendations include expanding career guidance, boosting access to training for mid- and late-career workers and promoting adult learning to close skills gaps.

WEC agrees that stronger emphasis on lifelong learning, re-skilling, and skills-based hiring is needed and encourages to go further by recognising the role of public-private partnerships (PPPs) in delivering effective training and employment services. Such collaborations between public and private employment services could significantly enhance the reach and impact of training programmes for older generations.

Overall, the OECD Employment Outlook 2025 calls for intergenerational strategies that support workers of all ages. The report highlights the need for:

• Inclusive policies that reflect the needs of a multigenerational workforce
• Flexible work models that adapt to different life stages and career paths
• Lifelong learning systems that empower individuals to grow throughout their careers

WEC's upcoming Social Impact Report will dive deep into how flexible forms of work present solutions for every generation to thrive at work. Through concrete examples collected across WEC's membership, we will demonstrate how it's possible to foster labour markets that are inclusive, adaptable, and future-ready.