Given the current state of European labour markets, the Commission on Employment published a report that includes realistic changes but disturbing at the same time.
The unemployment rate in the EU-27 has been stagnant at 9.6% for almost a year, employment takes a positive dynamic for the first time in two years, however weak (+ 0.2%), long-term unemployment is increasing, the isolation of structural labour market groups (youth, low-skilled immigrants) is confirmed, the increase in labour productivity is low (2% after a negative six months).
This project focuses on two main elements: the link between training and employment on the one hand and the debate on labour productivity on the other hand. On the triptych training-employment-generation, the crisis has confirmed insufficient match between supply and demand for skills on national labour markets. Nevertheless, the Commission wants to be cautious in announcing the possible existence of a “mismatch between the skills of people looking for work and skills required for available jobs”.
The European Commission presents four measures :
- Primarily, to make labour markets more attractive through a shift of fiscal tax , by tax allowances and investment in childcare facilities.
- The second element is the reintegration of the unemployed in accordance with the approach of “Making Work Pay” which assumes that the functioning of social systems can exert a negative influence on the behavior of market labour . However, the Commission focuses more on reducing incomes (income replacement and unemployment benefits) than increase net incomes.
Thirdly to reform pension systems, a goal that is needed in an aging population and budgetary consolidation: the program predict an advanced age of retirement, reducing early retirement systems, support development of additional private savings account, a review of the directive on pension funds and introduction of new measures as part of the Green Paper on pensions.
- Finally, it is to continue along the path of reconciliation between security and flexibility.The principle of flexicurity (which appears only once in all the texts) is approached from two angles: first, through the types of employment contract offered (Unfixed term contract should be used more) and secondly, through the simplification of systems of recognition of professional qualifications.