Brussels, 08/01/2015 (Agence Europe) - In a stagnant macro-economic context, European employment has still managed to achieve modest but consistent growth since mid-2013, according to the latest Employment and Social Situation Quarterly Review, which was published by the European Commission on Thursday 8 January.
The Commission notes that employment rose by 0.3% in the second and third quarters of 2015. During the third quarter of 2014, the employment rate rose in most member states of the EU, including in countries with very high unemployment rate such as Greece (+1.7%), Spain (+0.3%) and Portugal (+1.4%). In the year to the third quarter of 2014, employment rose by 0.9%. However, it is still 1.8% lower than in the third quarter of 2008. “We will not return to pre-crisis employment levels as quickly as we hoped”, the Commission regrets. One positive sign, however, is that employment was on the up in most sectors, particularly services, and that the increase relates to all jobs (temporary and part-time work, permanent and full-time contracts).
Marianne Thyssen, the competent Commissioner, said that although this rise in employment is “positive, it is still too small and too slow. Especially long-term unemployment remains a crucial challenge for the EU”. She went on to stress that with “our 315 billion euro investment offensive, we have the ambition to boost economic growth and to create more jobs”.
Many challenges remain, in particular long-term unemployment and low employment opportunities for youth (15-24) and young adults (25-39). The youth unemployment rate has dropped considerably in the EU, but still remains very high. Long-term unemployment is a growing problem. In the second quarter of 2014, 12.4 million people in total (5.1% of the labour force) in the EU had been unemployed for more than one year, more than half of them for more than two years. In Greece and Cyprus, long-term unemployment levels have reached historic highs.
The growth in household income (GHDI) in the EU continued, but at a slower pace. The easing of financial distress in low-income households, observed in the first half of 2014, appears to have dropped off in recent months.
Tax reforms. According to 2012 figures (the most recent data available to the review), the tax burden on labour decreased in less than half of the member states, and it was accompanied by an increase in the tax burden on consumption in only a handful of countries. The fight against tax evasion and avoidance can contribute positively to budgetary and employment goals, whilst achieving social goals, the Commission stresses.
The health and social services sector is characterised by a better skilled workforce than the rest of the economy, but jobs are less attractive. Nevertheless, the Commission forecasts that the number of jobs in this sector will increase (ageing labour force, economic and social consequences of the crisis, technological progress). The economic and financial crisis has played a double role in relation to health and social services: these services can cushion the impact of the crisis, but also budget constraints had an impact on the financing of health and social services through significant cuts in the spending on in-kind benefits. (LC)