Brussels, 25/11/2010 (Agence Europe) - Presented by Lázsló Andor on Thursday 25 November, the 2010 report on employment in Europe gives a complete panorama of the employment situation in the EU throughout the crisis. It analyses the labour market measures taken by member states - such as provisions for part-time work or benefits to complete workers' incomes. It also covers the possibility of strengthening existing measures and the need to gradually phase out crisis-related labour market measures once the situation improves, especially in the case of budgetary improvements.
The 22nd report of this kind (annual reports have been published since 1989), the 2010 report analyses the effects of labour market segmentation on permanent workers and temporary workers, and especially on the young. It also sets out the possible solutions for resolving not only the low rate of transition between temporary and permanent jobs but also the considerable differences in remuneration between the two kinds of job contracts.
Addressing the press, Commissioner Andor highlighted three elements of the report:
(1) Overall results in relation to employment and the European economy. Employment: - Over the second half of 2010, unemployment peaked. The Commission hopes job growth will resume during the second half of 2011 with the GDP upswing in most member states. Economy: - The rise in unemployment was a consequence of the economic crisis and concerns 23 million Europeans. Nonetheless, in comparison with the United States, European results are better with unemployment being less abrupt than expected two years ago at the beginning of the financial crisis.
(2) Diversity between different groups of countries. The 2010 report indicates three groups of countries having successfully weathered the storm by maintaining good employment figures: - Germany, Austria and Belgium. These are three countries where labour markets have faced the crisis almost solely by reducing the number of working hours per employee and by reducing GDP/hours worked. In the United Kingdom and the Netherlands, the decision was taken to reduce hours worked and productivity rather than cut jobs. Spain, Ireland and Portugal simply cut jobs to face the recession.
(3) Commission policies to raise the challenges in times of crisis. Lázsló Andor alluded to the new skills and jobs agenda adopted on Tuesday, in which the concept of flexibility is maintained and which must guide future labour market reforms (see EUROPE 10261/10262). The major challenge is that of labour market segmentation, especially for young workers and employees who are often in a disadvantaged situation compared to the other groups of workers, thus leading to an imbalance in the employment situation. Commissioner Andor pointed out that the reform proposals being made are turned towards progress and should make it possible to restore the labour market, although there is no cure-all. He said there were different groups that have been affected differently - groups on the labour market suffering from unemployment (e.g. due to skills or gender), and groups where there are inflows of migrant workers onto the labour market. To tackle the question, the groups must be taken one at a time and solutions must be adapted for these groups for the period now beginning.
Lázsló Andor was quizzed by a reporter who asked him what he thought of a system that does not aim to modify labour taxation and which aims to keep the taxation of profits as low as possible. He was also asked for his opinion on Ireland. Andor said: “EU 2020 strategy touches on taxation and on external factors beyond the range of measures concerning the labour market as such. This also affects employment. Further to the crisis, the right balance must be struck to remain competitive and to see what the different opposing elements are. It is necessary to invest in human resources which is the source of competiveness and the economy. This also applies to Ireland which uses taxation as an asset and, given the situation, we have to revise this strategy”.
Social movements. Those affected by the crisis accuse the Commission of being responsible. The Commission, however, believes austerity measures must be taken by member states. On this, Andor explained that the period was a fragile one. There are budgetary improvements that must be made by member states, and this will be felt during the next few years. However, he said, that is not enough to protect the most vulnerable. Investment must be made in human resources as, if one reduces these resources, then one places the European economy in long-term danger. That is why, he said, budgetary consolidation must above all combine measures not only on the spending but also on the income side. One must try to take measures that are as equitable as possible and protect social services and the social benefits provided in so far as these services cannot be replaced (the private sector cannot be substituted for the public sector). Therefore, in macro-economic dialogue with all social partners and ECB leaders and those of the Eurogroup, Andor said, the need for an exit strategy from the crisis is underlined, as is the need to take the protection of the most vulnerable into account. (G.B./transl.jl)