OECD warns spreading non-compete clauses are stunting economic growth

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The OECD published a report on July 7, 2026, highlighting the growing prevalence of non-compete clauses in employment contracts across multiple countries. These contractual provisions restrict workers from joining competitors or starting rival businesses after leaving a job. The OECD argues that such clauses are increasingly being applied beyond senior or specialized roles, affecting a broader segment of the workforce. The report warns that this trend suppresses labor mobility, wages, and overall economic growth. The findings call attention to the need for policy scrutiny and potential reform of how non-compete agreements are regulated.

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