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Topic dossier · Future of Work and Skills

Labour market change

Labour markets change continuously as sectors grow and shrink, technology shifts tasks, populations age and climate policy reshapes industries. The effects show up in which jobs exist, where, on what contracts and at what pay. This page sets out how labour market change happens, how it is measured with standard classifications, and what evidence serves the labour ministries, employers and unions who respond to it.

01In brief

The short answer.

Labour market change is the ongoing shift in which jobs exist, where, on what contracts and at what pay. Sectoral shifts move workers, temporary and on-call contracts have grown in many countries, demography reshapes labour supply, and climate change and policy reallocate jobs between industries and places.

02Geography

People and exposure in Southeast Asia.

Population density, night-time lights, air quality, heat and floods, framed on Southeast Asia; each layer is a dated NASA product.

The interactive map needs JavaScript; the layer list and sources are below.

Layers 2

People and exposure

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Natural Earth

Loading the latest NASA imagery.

Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.

Population density, night-time lights, air quality, heat and floods, framed on Southeast Asia.Satellite and model products as NASA publishes them, each with its own date; indicators, not assessments of any place; claim ceiling INTEGRATED.

Data: NASA GIBS · ASTER GDEM · Natural EarthSources and licences

  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). CC BY 4.0
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • OMI nitrogen dioxide (Aura) and OMPS aerosol index (Suomi NPP), NASA; distributed by the NASA GES DISC; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • Globe: MapLibre GL JS 6.9.1, BSD-3-Clause, © MapLibre contributors.

Layers and dates

  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • Nitrogen dioxide, lower atmosphere column: OMI Aura, NASA GES DISC · 10 Oct 2026
  • Land surface temperature, day, 8-day composite: VIIRS NOAA-20 Level 3, 8-day, NASA LANCE · 14 Sep 2026
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026

03The question

Labour market change: how the risk develops.

Sector employment and occupational risk. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Sectoral shifts move workers

Employment moves from agriculture and manufacturing toward services as economies develop, and from declining to growing industries during transitions.

Mechanism

Contracts are changing

Temporary, part-time, on-call and platform work have grown in many countries, changing security, benefits and bargaining power.

Mechanism

Demography reshapes supply

Ageing reduces the working-age population in some countries, while young populations in others need many new jobs each year.

Mechanism

Climate change and policy reallocate jobs

Heat, extreme weather and decarbonisation affect jobs in agriculture, construction, energy and transport, creating and ending work in different places.

04Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
Labour underutilisationA measure combining unemployment, underemployment and the potential labour force.
Employment-to-population ratioThe share of the working-age population that is employed at a given time.
Non-standard employmentWork that is temporary, part-time, on-call or otherwise outside an open-ended full-time contract.
05Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
Employment-to-population ratiopercentquarterlyLabour force surveysOFFICIAL
Employment by sector and occupationpercent of employmentannualLabour force surveys using ISCOOFFICIAL
Temporary employmentpercent of employeesannualLabour force surveysOFFICIAL
Labour underutilisationpercent of extended labour forcequarterlyLabour force surveysOFFICIAL
Job vacancy ratepercent of posts vacantquarterlyVacancy surveysOFFICIAL
Real median wagecurrency units in constant pricesannualWage statisticsOFFICIAL
06Canvas

From sources to decisions.

The topic as a computational graph: named sources feed the methods, an evidence review gates the outputs, and the decisions stay with the authorities that hold them.

Pipeline canvas · Labour market change as a run graphDesign, not a record
Labour market change: from task exposure to reskilling pathwaysOccupations are broken into tasks and scored for exposure; skill gaps are found against vacancies; training pathways are designed with employers; placement and social protection support the transition. Design of the process, not a record of a run.

Fig. 02Nodes carry their type, two metric rows and a state; connectors show what feeds what; dashed frames name the owners; the timeline is the cadence. Design of the pipeline, not a record of a run.

07Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
ILOSTATEmployment, unemployment, underutilisation and wagesOpen, CC BY 4.0
OECD Employment Outlook and labour statisticsLabour market trends and policy analysisPublic, OECD terms
Eurostat labour force surveyEmployment by sector, occupation and contract typeOpen, Eurostat reuse policy
National labour force surveysEmployment structureLicence per statistics office
Online job posting data summariesDemand by occupation and skillCommercial; public summaries (to check)
08Decisions

Who decides, and what the evidence serves.

Future of Work and Skills prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
Labour ministriesWhich sectors and groups need transition supportChange profiles; scenarios
Employers' organizations and unionsWhat to negotiate on contracts and transitionsJob quality evidence
Public employment servicesWhere to focus job matching and trainingVacancy and underutilisation evidence

Outputs this topic produces

  • Labour market change profiles by sector and region
  • Contract and job quality analyses
  • Transition scenarios for climate-affected sectors
  • Evidence notes for employment strategies
09Core questions

What labour economists ask.

  • Which sectors and occupations are growing or shrinking, where and for whom?
  • Is change driven by technology, trade, demand, demography or policy?
  • Are displaced workers finding comparable work, and how long does it take?
  • Are labour markets becoming more polarised between high- and low-paid work?
10Mechanisms

Drivers of structural change.

Technology changes the relative productivity of tasks, shifting demand towards skills that complement it. Trade and global value chains move production between countries. Demographic ageing shrinks labour supply in some economies and increases demand for care work. Consumer demand shifts as incomes rise. Public policy, from minimum wages to industrial strategy, shapes all of these.

Change is uneven. Earlier computerisation reduced demand for routine middle-skill jobs in many economies, a pattern called job polarisation. Workers displaced from declining industries often face lasting earnings losses, especially older workers and those in places with few alternatives.

11Methods and data

Measuring change and its limits.

  1. 01

    Labour force surveys and administrative data

    Employment, hours and earnings by sector and occupation. Informal work is poorly captured in many countries.

  2. 02

    Occupational risk indicators

    Measures of exposure to automation, trade or climate built from task data, using economics and development economics. Exposure is not the same as job loss.

  3. 03

    Displacement studies

    Following workers after job loss with linked data and econometrics. Such data exist in relatively few countries.

  4. 04

    Vacancy and online job data

    Near-real-time signals of skill demand. Online postings over-represent some occupations and regions.

12Methods

How it is studied, and what the methods cannot say.

  1. Economics and development economicsTask-based analysis of technology · Labour market institutions · Just transition economicsApplied here
  2. EconometricsDisplacement effects with linked data · Training programme evaluation · Workforce projectionsApplied here
  3. Social and behavioural scienceJob quality surveys · Social dialogue studies · Learner experience researchApplied here
13Questions

Questions and answers.

What is labour underutilisation?
A broad measure combining unemployment, time-related underemployment and the potential labour force, showing unmet need for work beyond the unemployment rate.
What is ISCO?
The International Standard Classification of Occupations, maintained by the ILO, used to classify jobs consistently across countries.
How does climate change affect jobs?
Through heat and extreme weather that reduce working hours and productivity, and through policies that shrink some industries and grow others.
What is job polarisation?
Growth in high-paid and low-paid jobs alongside a decline in middle-paid routine jobs, associated with earlier waves of computerisation in many economies.
Why do displaced workers lose earnings for years?
Their skills may be specific to a declining firm or industry, local alternatives may pay less, and long spells out of work can reduce future prospects.
Does the platform publish occupational risk rankings?
It publishes exposure indicators with their methods and uncertainty, not rankings of jobs that will disappear.
Can online job data replace surveys?
No. They are timely but unrepresentative. They complement surveys and administrative data rather than replacing them.
Future of Work and Skills

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