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Employment and Social Developments in Europe 2014


Chart 21: Temporary contracts are the main typology of new jobs created in the last quarters
Employees in permanent and temporary work in the EU-28, self-employment and total employment (15–64)
Change on previous year (000's persons) 5000 0
Temporary employees
Permanent employees
4000
Self-employed
Overall
3000
2000
1000
-1000
-2000
-3000
-4000
-5000
-6000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2008 2009 2010 2011 2012 2013 2014
Sources: Eurostat, LFS [lfsq_egaps,lfsq_etgaed] Data non-seasonally adjusted.


The policy mix notably includes: avail- 3.3.3. Labour market While the share of temporary contracts
ability of flexible working arrange- segmentation and skill in total employment is higher for women,
ments and long part-time positions mismatches more recently the increase has been
for parents; incentives to share unpaid faster for men.
work within the couple; and available, Strong labour market segmentation (high
affordable, quality childcare. Some coun - incidence of atypical work) and the per - Growing levels of atypical employment,
tries, such as Germany and the United sistence of skill mismatches on the labour such as part-time work, casual work or
Kingdom, have a high share of working market, together with a rising share of long- work on temporary contracts reflects
women but with relatively short hours. term unemployment, point to the increas- strong labour market segmentation and
Others, such as Spain or Ireland, have a ingly structural nature of the EU’s labour is therefore considered to be one of the
lower female labour market participation market problems and are a threat to future main drivers of increasing inequality,
rate although those women who do work welfare. They create a persistent exclusion even in the pre-crisis period, despite
tend to work longer hours. of ‘outsiders’ and force many people into employment growth ( 100 ). Recent stud-
work that does not match their skills. The ies have also demonstrated that the
OECD analysis reveals that closing the resulting depreciation of skills will inhibit increase in non-standard work contracts
gender gap reveals some great poten- growth for a long period of time, while at the has had a negative influence on total
tial in terms of economic growth through same time skills needs are changing, with productivity as a result of an underin-
101
97
activating existing labour resources ( ). an increasing need for highly-skilled work- vestment in human capital ( ).
In countries such as Ireland and
ers. In light of the human capital shortages
Luxembourg, which have low female to be expected, the policy focus must lie on In the vast majority of countries, workers
activity, a convergence in activity rates structural labour market reforms. on temporary contracts are found ( ) to
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could increase the total labour force by make less intensive use of their informa -
more than 20 %. Moreover, an increase In recent years, changes in labour market tion-processing skills and some generic
in the working time of women would conditions and policy changes, like dereg- skills (e.g. task direction, influencing and
98
obviously increase still further the con- ulation of non-standard work forms ( ), self-organising), than those in perma-
vergence in labour force intensity. The have contributed to the increase in non- nent employment — suggesting that
convergence in intensity contributes standard forms of contracts and a rise in the tasks carried out by workers hired
more to the increase in the total size of part-time work and the use of temporary under different contractual arrange-
the labour force in countries with a high contracts. For example, a tendency to make ments vary substantially. Such a usage
share of women working part-time. more extensive use of temporary contract gap can potentially reduce future oppor -
was already evident before the crisis, par- tunities for temporary workers and have
Furthermore, the OECD estimates that ticularly in some countries. However, tem- a negative impact on labour productivity
halving the gender labour-force partici- porary contracts have become the main of young workers if they are on tempo-
pation gap could bring a 6.2 % gain in form of new jobs created in recent quarters rary contracts for long periods. Moreover,
GDP across 21 EU members of the OECD (Chart 21) ( 99 ). employers invest less in training of tem -
by 2030, plus a further 6.2 % gain for full porary workers.
98

convergence. The largest gains from full ( ) Eichhorst, 2013.
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convergence are projected in countries ( ) An employee is considered as having a Therefore, tapping into existing labour
temporary job if employer and employee
like Italy and Greece with large existing agree that its end is determined by objective resources requires the promotion of
gender gaps (around 20 %) while the conditions, such as a specific date, the regular instead of atypical employment,
completion of an assignment, or the return
growth potential is limited in countries of an employee who is temporarily replaced. helping transition to permanent jobs and
like Finland or Sweden (less than 5 %). Typical cases include: people in seasonal
employment; people engaged by an agency
or employment exchange and hired to a third ( ) OECD (2014a).
100
party to perform a specific task (unless there is 101
a written work contract of unlimited duration); ( ) Franceschi and Mariani (2014); and ISFOL (2014).
( ) Thevenon et al. (2012). people with specific training contracts (Eurostat). ( ) Quintini (2014).
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