This discussion asked participants to explore how to increase labour market participation among groups most at risk of exclusion. Participants were asked to share their insights on what policies and incentives could be used to encourage employers to invest in recruiting staff from these groups and to address barriers to participation.
Participants explored the role of inclusivity as a critical component to the labour market. Globally, many countries face significant challenges with the exclusion of certain groups in their labour markets.
Examples of these groups who are often on the periphery of labour markets, include:
- People with disabilities. A significant barrier for people with disabilities entering the labour market is the lack of reasonable adjustments and flexible work. The UK’s Keep Britain Working Review illustrates a large disability employment gap.
- People with ill health. Some issues with lack of employer confidence to manage workers with health conditions.
- People with caring responsibilities. Lack of flexibility in roles, or awareness of flexible working, can act as a barrier for those with caring responsibilities.
- Older workers.
This is against the backdrop of several broader economic and demographic trends across Europe which impact the supply side of labour markets including rapidly increasing youth inactivity, ageing populations, technological change, and growing global insecurity.
The question of participation is often examined from the angle of getting people into work, but policy makers should also consider the issue of retention – keeping those already in work from leaving. Reducing the flow of people out of the labour market will require rethinking approaches to skills, development opportunities and training. Wider demographic and geopolitical trends will likely mean people stay in work for longer. Cost pressures, competitive markets, the impact of AI and tech will also contribute to this.
Globally, there is also a gender angle to participation. While significant progress has been made in achieving gender equality, especially in advanced economies[1], there is still some way to go to address systemic gender inequality in labour markets. Women face lower employment rates with persistent barriers linked to unequal (and often unpaid) care responsibilities, social norms of gendered stereotypes that shape job roles, and inaccessible workplaces. Women remain underrepresented in leadership roles[2]. This inequality is amplified by the growing impact of AI. The underrepresentation of women in AI design could lead to increasing bias and exclusion.
Recommendations
There is no single solution or easy fix to address participation issues. Policymakers should work with social partners and civil society organisations to develop multi-pronged approaches.
Strong employment rights are the foundation of an inclusive labour market, and interventions should be rooted in international labour standards, products of social dialogue, collective bargaining, and anti-harassment frameworks, as a few examples.
At the core of any solution is a people centred approach, that is developed at both a local and national level.This is particularly relevant in economies that are uneven. Any intervention or policy aimed at increasing labour market participation and inclusion should take account of individual circumstances rather than treating groups as a monolith. For example, according to the OECD, in 2024, 12.85% of 15–19-year-olds globally were NEETs (not in employment, education or training). These NEETs are individuals with individual stories. Similarly, and from the perspective of individual countries, policies that are designed at a local level can better reflect the nuances of a particular group/area. While increasing participation and inclusivity is a national priority for many countries, the details should be worked through at a local level with local communities. One example of this is in Spain, where national equality plans are designed with businesses and unions discussing specific detailed points at both national and local/regional levels.
Businesses and trade unions should be at the core of developing any solutions. An example of this in the UK context is the ‘Vanguard’ group of the Keep Britain Working Review, where c.150 businesses employing 1.5 million workers have signed up to a three-year programme to develop solutions to transform workplace health and inclusion in the UK[3]. Charters are another means to achieving these goals.
Other interventions include:
- Updating and strengthening leave policies, including but not limited to (paid) parental leave and carers leave.
- Establishing and strengthening reasonable adjustments and flexible working. This could also include wider flexibility, such as paid sabbaticals and phased retirements.
- Better signposting of existing rights, including by employers in job advertisements. For example, in the UK context, there is already a right to request flexible work, and protected reasonable adjustments for those with disabilities, but many are unaware of these. There is a significant disincentive for those with caring responsibilities or that have disabilities to apply for jobs if they cannot see that these adjustments are available to them.
- Tailored guidance for employers. Groups who are under-represented in the labour market are not homogenous and may require different adjustments or types of flexible working (e.g. those with disabilities).
- Youth job guarantees e.g. schemes in the UK and across Europe.
Ultimately, there is no single solution to an inclusive approach to increasing labour market participation. Interventions require government, businesses, unions and civil society organisations to work together to develop multiple approaches that place labour markets as part of a wider economic system.
[1] OECD, Pursuing Gender Equality in a Changing World, 15 September 2025. Link: https://www.oecd.org/en/publications/pursuing-gender-equality-in-a-changing-world_e8d9869a-en/full-report.html#boxsection-d1e32
[2] OECD, Gender Equality in a Changing World: Taking Stock and Moving Forward. 15 September 2025. Link: https://doi.org/10.1787/e808086f-en.
[3] Department for Work and Pensions (Press Release), Support for Keep Britain Working ramps us across employers and regions. 31 March 2026. Link: https://www.gov.uk/government/news/support-for-keep-britain-working-ramps-up-across-employers-and-regions