The OECD Better Life Index: Understanding the Jobs Dimension
The OECD Better Life Index (BLI) serves as a comprehensive framework designed to measure the well-being of societies beyond traditional economic indicators like GDP. Among its various dimensions, the Jobs category is one of the most critical. It acknowledges that employment is not merely a source of income, but a fundamental driver of social inclusion, personal identity, and overall life satisfaction.
As we navigate the labor market of 2026, the Index provides a vital lens through which we can view how work impacts the daily lives of citizens across the globe.
The Core Metrics of Employment Well-being
The Index evaluates the professional sphere through three distinct lenses that capture the stability and reward of a career path:
Personal Earnings: This measures the average gross annual earnings of full-time employees. It is the primary indicator of a worker's ability to afford a high standard of living and invest in their future.
Job Security: This metric assesses the likelihood of losing one's job and the expected duration of unemployment. In an era defined by rapid technological shifts, security is a major factor in reducing chronic stress and anxiety.
The Unemployment Rate: This tracks the portion of the labor force currently without work but actively seeking it. High unemployment rates generally correlate with lower national scores in life satisfaction and social cohesion.
Evaluating the Quality of the Working Environment
While the quantity of jobs is important, the OECD places significant weight on the quality of those jobs. High-quality employment is defined by a balance of three factors:
Earnings Quality
This goes beyond the average paycheck to look at how wealth is distributed. It considers whether the earnings are sufficient to provide a "living wage" and whether the gap between the highest and lowest earners is widening or narrowing.
Labor Market Security
A healthy job market requires a robust safety net. This pillar looks at how well a country protects its workers through unemployment insurance and re-training programs, which are essential for those transitioning between industries in a changing economy.
The Quality of the Working Environment
This factor measures "job strain," which occurs when workers face high demands but have little control over their tasks. It also accounts for physical safety and the prevalence of very long working hours, which can lead to burnout.
Global Insights and Future Trends
In the current landscape, several key trends have emerged that define the "Jobs" dimension:
The Impact of Digitalization: Automation and AI have reshaped the job security metric. Countries that invest heavily in adult education and "lifelong learning" tend to show higher levels of job security despite technological disruptions.
The Resilience of Employment: Many OECD nations have seen record-high employment rates in recent years. However, the Index reveals a "hidden" challenge: even with high employment, many workers feel a sense of financial precarity due to the rising cost of living, emphasizing the need for higher earnings quality.
Gender Equality in the Workplace: While more women are entering the workforce than ever before, the "Jobs" dimension still reflects a persistent gender pay gap and differences in the types of contracts held by men and women. Closing this gap remains a primary goal for improving overall well-being scores.
The OECD Better Life Index reminds us that a successful labor market is one that supports the human being, not just the economy. By focusing on earnings, security, and the quality of the environment, the Index provides a roadmap for policymakers to create workplaces that enhance, rather than diminish, the quality of life.
Comparative Analysis of Job Quality by Country
The OECD Better Life Index provides a comparative look at how different nations perform across key labor market metrics. While a country's overall "Jobs" score is a composite of several indicators, the table below highlights the performance of selected OECD countries across three primary pillars: Employment Rate (the percentage of the working-age population with a job), Personal Earnings (average annual gross earnings in USD), and Job Security (the probability of losing one's job).
These figures reflect a blend of the most recent 2024 and 2025 OECD data releases, illustrating the diverse economic landscapes across the member states.
Key Job Metrics across Selected OECD Countries
| Country | Employment Rate (%) | Personal Earnings (USD) | Job Security (%) |
| Iceland | 82% | $75,000 | 2.1% |
| Norway | 75% | $64,000 | 2.4% |
| Switzerland | 80% | $80,000 | 4.0% |
| Luxembourg | 67% | $78,000 | 2.1% |
| United States | 71% | $77,000 | 3.8% |
| Germany | 77% | $58,000 | 2.6% |
| Netherlands | 82% | $63,000 | 2.3% |
| United Kingdom | 75% | $54,000 | 3.3% |
| Australia | 77% | $60,000 | 4.7% |
| Japan | 78% | $38,000 | 3.2% |
| Mexico | 63% | $18,000 | 5.2% |
As demonstrated in the table, there is often a trade-off between different aspects of job quality. For example, the United States and Switzerland lead significantly in personal earnings but face slightly higher job insecurity or lower employment rates compared to nations like Iceland or the Netherlands, which boast exceptionally high workforce participation and security. Conversely, countries like Japan maintain high employment through cultural and structural norms, even if average earnings lag behind Western European counterparts. Ultimately, these metrics suggest that the "best" country for jobs depends on whether an individual prioritizes the size of their paycheck, the stability of their position, or the ease of finding work.
Leading Improvers in the OECD Jobs Dimension
While traditional leaders like Switzerland and Norway often hold the top spots in absolute terms, the "Highest Improvement" category of the Better Life Index highlights nations that have made the most significant strides in labor market resilience and job quality over the recent years (2022–2026). These improvements often stem from successful structural reforms, rapid post-pandemic recovery, or targeted policies to increase workforce participation among underrepresented groups.
The table below tracks the countries that have shown the most notable upward trajectories in their "Jobs" score, specifically looking at gains in Employment Rates, Real Wage Growth (adjusted for inflation), and reductions in Long-term Unemployment.
OECD Countries with Significant Job Market Improvements (2024–2026)
| Country | Area of Highest Improvement | Employment Gain (pts) | Real Wage Trend |
| Greece | Long-term Unemployment Reduction | +4.2 | Significant Recovery |
| Colombia | Formalization of Employment | +3.5 | Moderate Increase |
| Portugal | Youth & Migrant Integration | +2.8 | Steady Growth |
| India (OECD Partner) | Total Workforce Participation | +5.1 | High Growth |
| Ireland | Productivity-Linked Earnings | +1.5 | Market Leading |
| Mexico | Female Labor Force Participation | +3.0 | Catching Up |
| Estonia | Digital & Remote Job Security | +2.2 | Resilient |
The data suggests a "catch-up" effect in several Southern and Eastern European economies. Greece, for instance, has seen a dramatic fall in long-term unemployment, a metric that historically weighed down its overall well-being score. Similarly, Mexico and Colombia have made significant strides in bringing more workers into the formal economy, which directly improves "Job Security" and "Earnings Quality" scores within the Index. In contrast, Ireland continues to improve its standing by leveraging high-tech sector growth into record-high personal earnings. These shifts prove that while the "Jobs" dimension is often slow to change, proactive policy interventions and investments in skills can significantly move the needle on a nation's well-being.
Targeted National Projects for Job Market Improvement
While the OECD Better Life Index provides a high-level view of progress, that progress is often driven by specific, large-scale national initiatives. These projects are designed to tackle localized challenges—such as high informality, gender gaps, or the need for digital upskilling—which in turn boosts a country's ranking in the "Jobs" dimension.
The following table details the flagship improvement projects currently being implemented in the "high-growth" countries identified for 2026.
Key National Employment Projects (2025–2026)
| Country | Flagship Project / Reform | Primary Objective | Key Impact Target |
| Greece | Digital Work Card 2.0 | Reduce undeclared work and monitor overtime hours accurately. | Mandatory implementation for all sectors by mid-2025. |
| Colombia | Labor Reform 2025 (Law 2466) | Formalize gig workers and shift to indefinite-term contracts as the "general rule." | Gradual reduction of workweek to 42 hours by July 2026. |
| Mexico | Decent Work Initiative 2026 | Reduce the 48-hour workweek and close the gender participation gap in the South. | Reduction of 2 working hours per year; expanded childcare support. |
| Ireland | Skillnet Ireland Budget 2026 | Public-private investment in AI, green tech, and SME productivity. | €80M total investment to upskill 100k+ workers for the digital transition. |
| Estonia | Coalition Tech Reform (2025-27) | Modernize the Employment Contracts Act for hybrid/remote work flexibility. | Legal framework for "remote-first" contracts and simplified hiring by Q3 2025. |
| Portugal | Agenda for Decent Work | Combat precarious employment and regulate "platform work" (apps/gig economy). | Strengthening of collective bargaining and increased fines for illegal outsourcing. |
These projects demonstrate that "improving" a job market is not just about creating more roles, but about refining the legal and digital infrastructure of the workplace. In Colombia and Mexico, the focus is heavily on formalization and worker rights, ensuring that a job provides a stable legal foundation. Meanwhile, in advanced digital economies like Ireland and Estonia, the projects shift toward ensuring the workforce can keep pace with AI and remote-work trends. By tracking these specific projects, we can see the tangible efforts that lead to the statistical gains observed in the Better Life Index.