Brussels, 18/04/2012 (Agence Europe) - In a context of unemployment at an average of 10% in the EU, the European Commission presented a set of concrete measures on Wednesday 18 April, aimed at boosting jobs and creating growth. The task is going to be difficult because since 2008, 6 million jobs have been lost. The Commission is proposing three medium term European strategic action areas to address this problem. Although it is, above all, up to member states to take action in this connection, because employment falls within a national remit, the Commission also wants to get EU levers in motion for supporting a job rich recovery, which tackles both supply and demand on the labour market and takes additional measures to create a genuine European labour market.
The Commission approves of setting up systems for introducing a national minimum wage, which it believes should help to play a role in tackling the problem of the working poor. It also advocates greater flexibility in these systems, which should be regularly adjusted on a sectoral base, in collaboration with social partners.
On the very delicate question of a minimum wage, the Commission explains in its communication “Towards a Job-rich Recovery” that “setting minimum wages at appropriate levels can help prevent growing in-work poverty and is an important factor in ensuring decent job quality”. It admits that the risk of in-work poverty is high, particularly in countries with uneven earnings distribution and low minimum wages, among people with temporary contracts and in low work intensity and single parent households. The Commission also adds that wage floors need to be sufficiently adjustable, with the involvement of the social partners to reflect overall economic developments. “Differentiated minimum wages, as already applied in several member states, can in that context be an effective means of upholding labour demand.”
The president of the Commission, José Manuel Barroso, stated: “Europe needs a job-creation strategy to tackle its unacceptable level of unemployment. The EU has a large untapped potential to boost job creation. All together, the green economy, the health and new technology sectors will create more than 20 million jobs in the years to come. Member states need to seize these opportunities, mobilise existing resources and stimulate their labour market in close cooperation with the social partners. Together we can make it happen.” László Andor, EU Commissioner for Employment, Social Affairs and Inclusion said: “Current levels of unemployment in the EU are dramatic and unacceptable. Job creation must become a real European priority.” He added: “If we are to restore growth and cope with major structural changes like the greening of the economy, an ageing population and technological change, the EU needs a dynamic and inclusive European labour market.”
Support for job creation. The Commission is encouraging member states to take action in the following areas, with possible assistance from European cohesion funds: - targeting subsidies to create employment for the young and long-term unemployed; - transferring the burden of income tax to indirect taxation (environmental, consumer and property taxes); - promoting the self-employed, social enterprises and start-ups; - regulating illegal work.
Governments should also begin “structural transformation” to tackle environmental, demographic and economic challenges in the future. According to the Commission these challenges could provide opportunities for creating jobs. The green economy should be able to create 5 million jobs by 2020, while the challenge of demographic ageing has created significant needs in terms of jobs in the medical and care sectors. The information and communication technology sector also represents great potential.
Restoring labour market dynamics. How can the labour markets be adapted to tough economic conditions? The principle underpinning all the different measures that the Commission is seeking to promote can be resumed in the single concept of flexicurity. Linking flexible employment and redundancy conditions with security through social cover is the most reasonable option according to the Commission. In this respect it is looking at models operating in Northern Europe. In practice, flexicurity is translated into more flexible working hours, possibilities for working part-time and new kinds of work contracts. This flexibility should also be accompanied by safety nets, particularly through minimum wage schemes and facilitating vocational transition for the young, unemployed, women and senior citizens, for example. Developing lifelong vocational training systems and anticipating economic restructuring, as well as enhancing social dialogue and promoting an active role for public employment agencies, are some of the measures translating the determination of the Commission to see an investment made by all the different actors in relaunching the European Union's economic recovery.
In an effort to highlight the fact that solutions to employment related problems are not exclusively a national concern, the Commission is calling for restrictions to be lifted against Bulgarians and Romanians having access to the labour market in other member states and, more generally, for other restrictions to be scrapped that affect Europeans obtaining certain posts in the public services in countries other than their own. The Commission considers that the single market will never be completed unless intra-Community mobility becomes a reality. Nonetheless, there are still significant disparities within the EU in the area of supply and demand in the labour market. Several barriers, however, have a negative impact on this much-touted mobility, such as the lack of recognition for qualifications, poor management of social protection systems and pensions for migrant workers. The Commission will therefore be launching its “Panorama competence” this year and is also seeking to put forward common rules for migrant workers.
Enhancing EU governance. European economic governance is a work in progress, with the European semester process being applied in budgetary and macro-economic areas. The economic crisis has underscored the need to accompany new economic governance with strengthened coordination of employment and social policies, explains the Commission. The latter has identified three possible areas for taking employment questions better into account in European economic governance: - the right to increased scrutiny of national policies (the integration of future “national job plans” in the European semester); - increased involvement of social partners (introduction of tripartite meetings before ECOFIN and EPSCO Councils); - greater ties between budget, employment and social policies (better synergy between EUROPE 2020 strategy objectives and the multiannual financial framework for 2014-2020). (MB/JK/transl.fl)