Employment within the Union has reached a level that is higher than its pre-crisis rate and wages have increased in almost all member states, according to the report on labour market developments in Europe. This report was published by the European Commission on Friday 13 October and also shows that the level of employment insecurity is increasing too.
The Commission report shows that more than 235 million people were employed in the European Union, which is higher than before the 2008 crisis. In 2016, the employment rate in the EU stood at 66.6% and 65.4% in the 19 members of the Eurozone. Countries with the most encouraging rates are Sweden (76.2% percent), Denmark (74.9%), the Netherlands (74.8%) and Germany (74.7%). Greece (52%), Croatia (56.9%) and Italy (57.2%) have some of the lowest employment levels.
Similarly, unemployment continued to fall to 7.7% in July 2017 (9.1% in the Eurozone). It is also easier for the unemployed to find a job. Long-term unemployment fell to 4% in 2016 in the Union (5% in the Eurozone), 1.5% above the 2008 crisis level (2% for the Eurozone).
The report highlights a “moderate” increase in wages of 1.2% in the Eurozone and a general increase in almost all member states. There is strong progress in the Baltic States, Hungary and Romania (Around 5%) and according to the Commission there is the sign of wage convergence throughout Europe. This analysis, however, is not shared by the trade unions in a study published at the end of August (see EUROPE 11851).
Differences in working conditions between workers is continuing to increase, with the increased use of “atypical” contracts, with temporary and non-waged workers, who are, due to their status, less protected than the others and for whom wages are much lower. The report says that the situation is undesirable because this trend could fragment the labour market, provoke a lack of investment in human capital and produce low productivity growth and low wages. The study also emphasises that at a macro-economic level, a less stable employment situation makes income available for consumption more volatile and reduces economic stabilisation capacity during periods of the recession.
This is a trend that the Commissioner for Employment and Social Affairs, Marianne Thyssen, would like to deal with. In her comments on the results she said that they wanted to modernise the rules on labour contracts and social protection in an effort to improve living and working conditions throughout the Union by way of adopting the European pillar of social rights, which is expected to take place at the Employment and Social Council (EPSCO) on 23 October next (see EUROPE 11828). (Original version in French by Pascal Hansens)