Page 13 - ePaper
P. 13
Executive summary
In terms of maintaining and developing human capital throughout working lives, the
review demonstrates the importance of stronger investment in skills of all workers
and avoiding skills depreciation. It highlights the complementary roles of public and
private sector organisations in the provision of life-long learning. At the same time,
appropriate policies are needed in order to prevent human capital investments being
wasted through labour market inactivity, weak labour market attachment, skills mis-
match, or the underutilisation of the employment potential of all.
Integrated policy approaches reflecting all these aspects are instrumental for … is instrumental for strengthening
strengthening EU competitiveness and for sustaining its social welfare model. Social competitiveness and sustaining
protection systems should represent an investment in human capital by effectively EU social welfare model.
activating and enabling those who can participate in the labour market, protecting
those (temporarily) excluded from the labour market and/or unable to participate
in it, and preparing individuals for potential risks in their lifecycles, in particular for
children and the elderly. Well-functioning welfare systems and well-designed social
investments are instrumental in supporting Europe’s main source of international
competitive advantage in the form of its highly skilled and productive human capital.
An increase in the supply of skilled human capital needs to be matched by an increase Increasing supply of skilled human
in the supply of quality jobs in order to yield a more productive workforce. Here the capital needs to be matched
Review takes a closer look at future EU labour market challenges and opportunities by supply of quality jobs.
in terms of job quality and work organisation, and notes large differences between
Member States, and across population groups. It discusses a range of workplace
issues such as transition rates from temporary jobs to more permanent employ-
ment; access to training; work-life and gender balance; work intensity; and levels of
autonomy at work.
In terms of these workplace issues, the crisis period has seen deterioration in a num - Structural changes generate opportunities
ber of Member States with, notably, a decrease in participation in life-long learning for creating of high quality jobs.
in around a third of Member States. On the other hand, ongoing structural changes
linked to technological advance and innovation, globalisation, demographic change
and the greening of the economy, should offer opportunities for the creation of high
quality jobs and shifts in work organisation that are supportive of productivity growth.
Equally, however, the same structural changes may also contribute to skills obsoles-
cence or jobs and wage polarisation, calling for broader and more pro-active policy
responses that can mitigate the risks associated to these changes. These include, for
instance, support for participation in life-long training, improved job-search assistance
and job profiling, and the promotion of social dialogue linked to work organisation
innovations that are conducive to supporting the development of the knowledge-
based economy.
Another important task facing the EU following the crisis years concerns the ways Restoring socio-economic convergence
in which it can promote and support the return to an upward socio-economic con- is another important goal facing the EU.
vergence of its Member States. This particularly concerns Southern and peripheral
EU 15 Member States, since most of the post-2004 Member States managed to
continue to converge even during the crisis.
The factors behind the divergence included, not only the sheer size of the economic
shock, but also the underlying structural imbalances in the affected countries in
the period before the crisis (notably weak productivity growth, lack of human capi-
tal investment, divergent unit labour cost growth, banking sector weaknesses and
property bubbles). In this respect the Review contributes to the ongoing debate on
the most appropriate forms of reforms given the aims of restoring convergence,
deepening the economic and monetary union, and strengthening its social dimension.
Adverse socio-economic outcomes such as labour market polarisation and poverty
or ‘scarring’ effects intensify the depth and persistence of any economic downturn if
adjustments are left solely to market forces. Here national level reforms to improve
the viability of social protection systems in the case of temporary shocks can sig-
nificantly contribute to the stabilisation of aggregate demand, long-term employ-
ment and productivity growth, thereby strengthening convergence and mitigating
hysteresis effects.
11
In terms of maintaining and developing human capital throughout working lives, the
review demonstrates the importance of stronger investment in skills of all workers
and avoiding skills depreciation. It highlights the complementary roles of public and
private sector organisations in the provision of life-long learning. At the same time,
appropriate policies are needed in order to prevent human capital investments being
wasted through labour market inactivity, weak labour market attachment, skills mis-
match, or the underutilisation of the employment potential of all.
Integrated policy approaches reflecting all these aspects are instrumental for … is instrumental for strengthening
strengthening EU competitiveness and for sustaining its social welfare model. Social competitiveness and sustaining
protection systems should represent an investment in human capital by effectively EU social welfare model.
activating and enabling those who can participate in the labour market, protecting
those (temporarily) excluded from the labour market and/or unable to participate
in it, and preparing individuals for potential risks in their lifecycles, in particular for
children and the elderly. Well-functioning welfare systems and well-designed social
investments are instrumental in supporting Europe’s main source of international
competitive advantage in the form of its highly skilled and productive human capital.
An increase in the supply of skilled human capital needs to be matched by an increase Increasing supply of skilled human
in the supply of quality jobs in order to yield a more productive workforce. Here the capital needs to be matched
Review takes a closer look at future EU labour market challenges and opportunities by supply of quality jobs.
in terms of job quality and work organisation, and notes large differences between
Member States, and across population groups. It discusses a range of workplace
issues such as transition rates from temporary jobs to more permanent employ-
ment; access to training; work-life and gender balance; work intensity; and levels of
autonomy at work.
In terms of these workplace issues, the crisis period has seen deterioration in a num - Structural changes generate opportunities
ber of Member States with, notably, a decrease in participation in life-long learning for creating of high quality jobs.
in around a third of Member States. On the other hand, ongoing structural changes
linked to technological advance and innovation, globalisation, demographic change
and the greening of the economy, should offer opportunities for the creation of high
quality jobs and shifts in work organisation that are supportive of productivity growth.
Equally, however, the same structural changes may also contribute to skills obsoles-
cence or jobs and wage polarisation, calling for broader and more pro-active policy
responses that can mitigate the risks associated to these changes. These include, for
instance, support for participation in life-long training, improved job-search assistance
and job profiling, and the promotion of social dialogue linked to work organisation
innovations that are conducive to supporting the development of the knowledge-
based economy.
Another important task facing the EU following the crisis years concerns the ways Restoring socio-economic convergence
in which it can promote and support the return to an upward socio-economic con- is another important goal facing the EU.
vergence of its Member States. This particularly concerns Southern and peripheral
EU 15 Member States, since most of the post-2004 Member States managed to
continue to converge even during the crisis.
The factors behind the divergence included, not only the sheer size of the economic
shock, but also the underlying structural imbalances in the affected countries in
the period before the crisis (notably weak productivity growth, lack of human capi-
tal investment, divergent unit labour cost growth, banking sector weaknesses and
property bubbles). In this respect the Review contributes to the ongoing debate on
the most appropriate forms of reforms given the aims of restoring convergence,
deepening the economic and monetary union, and strengthening its social dimension.
Adverse socio-economic outcomes such as labour market polarisation and poverty
or ‘scarring’ effects intensify the depth and persistence of any economic downturn if
adjustments are left solely to market forces. Here national level reforms to improve
the viability of social protection systems in the case of temporary shocks can sig-
nificantly contribute to the stabilisation of aggregate demand, long-term employ-
ment and productivity growth, thereby strengthening convergence and mitigating
hysteresis effects.
11
