Page 28 - ePaper
P. 28
Employment and Social Developments in Europe 2014
Chart 22: Higher coverage and adequacy of unemployment benefits
are associated with higher returns to employment
Panel A: coverage vs. returns to work Panel B: replacement rates vs. returns to work
55 NL DK
60
Transitions from STU to employment 2010-11, % 45 IT MT PL SK BG RO SE CY HR LT LV UK SI PT ES FR EE HU FI DE Transitions from unemployment to employment (2009-11 average, %) 40 EL RO SK EE MT HU UK PL CZ LT BG LV AT BE SE ES SI FR FI LU PT
AT
55
50
DK
50
CZ
45
40
35
35
30
30
25
25
y = 0.281x + 29.556
20
R² = 0.1936
EL
15
15
20
0
10
60
70
50
30
40
Net replacement rates, including unemployment,
Coverage of unemployment benefits for STU 2010, % 80 20 40 45 50 IT 55 60 65 70 75 IE 80 85
family, social and housing benefits, %
Source: Panel A: EU-LFS, DG EMPL calculations. 2012 value used for coverage of UK in 2010. 2011-12 value used for transitions of DE and PT. No data
available for BG, IE, LU and NL. Panel B: DG EMPL calculations based on Eurostat, EU-SILC 2009–10–11 longitudinal data and OECD-EC tax-benefit model.
However, the coverage of unemploy- Chart 23: Some convergence in employment rates by groups, EU-28
ment benefits for the short term
unemployed varies greatly across 50 to 64 y
Member States, ranging from less 8
than 20 % to more than 50 %. This 6
is due to variations in eligibility cri- 4 Females
teria and in the average time spent Change in employment rate 2012-13, pps 10 2 Total
in employment, as well as to differ- 0 ISCED 3-4 25 to 49 y
ences in the duration of benefits and Nationals Males
in take-up rates. The coverage of last -2 ISCED 0-2 25 to 29 y ISCED 5-8
resort (means-tested) schemes that -4 Third-country
support the long-term unemployed -6 20 to 24 y
who have no entitlements to other -8
65
70
benefits also varies a lot. While both 50 55 60 Employment rate 2002 75 80 85
unemployment benefits and social
assistance schemes are increasingly Source: Eurostat, lfsa_ergan and lfsa_ergaed.
associated with activation measures Notes: Third-country nationals: series start in 2005 instead of 2002. Levels of education: ISCED 0-2:
(job-search support, access to training, Pre-primary, primary and lower secondary; ISCED 3-4: Upper secondary and post-secondary non-tertiary;
ISCED 5-6: First and second stage of tertiary education.
individualised support), low coverage
undermines the effectiveness of acti -
vation in encouraging and supporting
actual returns to work. 3.3. The structural issue Taking the total as the benchmark,
of raising the labour market three groups can be distinguished.
This suggests that in order to restrain participation of specific A first group consists of women and
and reduce long-term unemployment, groups those aged 50-64 years of both sexes,
it is first necessary to reduce the which has shown some convergence in
inflow into unemployment, by sup Overview: a higher employment their employment rates even though
-
porting labour demand, while using rate among women, older in 2013 these still lagged behind the
measures such as short-time work people, young people average employment rate of the total
arrangements in difficult times. In and migrants is needed workforce by 6 and 9 pps respec-
addition, the newly unemployed need tively. Those aged 50-64 years saw
to be supported to return as quickly The resilience of an economy depends in a large increase in their employment
as possible to employment, through part on ensuring continuous wide-ranging rate overall, but with big differences
appropriate activation and support labour market participation for all groups between those aged 50-59 – with a
58
measures. Policies addressed specifi- of workers. However, over time ( ), con- rate of over 70 % – and those aged
cally at the long-term unemployed can vergence in this respect has only been 60-64 – with a rate of less than 35 %
then be most effectively deployed. seen for some groups (Chart 23). in 2013.
58
( ) Unfortunately, no comparative data is
available prior to 2002.
26
Chart 22: Higher coverage and adequacy of unemployment benefits
are associated with higher returns to employment
Panel A: coverage vs. returns to work Panel B: replacement rates vs. returns to work
55 NL DK
60
Transitions from STU to employment 2010-11, % 45 IT MT PL SK BG RO SE CY HR LT LV UK SI PT ES FR EE HU FI DE Transitions from unemployment to employment (2009-11 average, %) 40 EL RO SK EE MT HU UK PL CZ LT BG LV AT BE SE ES SI FR FI LU PT
AT
55
50
DK
50
CZ
45
40
35
35
30
30
25
25
y = 0.281x + 29.556
20
R² = 0.1936
EL
15
15
20
0
10
60
70
50
30
40
Net replacement rates, including unemployment,
Coverage of unemployment benefits for STU 2010, % 80 20 40 45 50 IT 55 60 65 70 75 IE 80 85
family, social and housing benefits, %
Source: Panel A: EU-LFS, DG EMPL calculations. 2012 value used for coverage of UK in 2010. 2011-12 value used for transitions of DE and PT. No data
available for BG, IE, LU and NL. Panel B: DG EMPL calculations based on Eurostat, EU-SILC 2009–10–11 longitudinal data and OECD-EC tax-benefit model.
However, the coverage of unemploy- Chart 23: Some convergence in employment rates by groups, EU-28
ment benefits for the short term
unemployed varies greatly across 50 to 64 y
Member States, ranging from less 8
than 20 % to more than 50 %. This 6
is due to variations in eligibility cri- 4 Females
teria and in the average time spent Change in employment rate 2012-13, pps 10 2 Total
in employment, as well as to differ- 0 ISCED 3-4 25 to 49 y
ences in the duration of benefits and Nationals Males
in take-up rates. The coverage of last -2 ISCED 0-2 25 to 29 y ISCED 5-8
resort (means-tested) schemes that -4 Third-country
support the long-term unemployed -6 20 to 24 y
who have no entitlements to other -8
65
70
benefits also varies a lot. While both 50 55 60 Employment rate 2002 75 80 85
unemployment benefits and social
assistance schemes are increasingly Source: Eurostat, lfsa_ergan and lfsa_ergaed.
associated with activation measures Notes: Third-country nationals: series start in 2005 instead of 2002. Levels of education: ISCED 0-2:
(job-search support, access to training, Pre-primary, primary and lower secondary; ISCED 3-4: Upper secondary and post-secondary non-tertiary;
ISCED 5-6: First and second stage of tertiary education.
individualised support), low coverage
undermines the effectiveness of acti -
vation in encouraging and supporting
actual returns to work. 3.3. The structural issue Taking the total as the benchmark,
of raising the labour market three groups can be distinguished.
This suggests that in order to restrain participation of specific A first group consists of women and
and reduce long-term unemployment, groups those aged 50-64 years of both sexes,
it is first necessary to reduce the which has shown some convergence in
inflow into unemployment, by sup Overview: a higher employment their employment rates even though
-
porting labour demand, while using rate among women, older in 2013 these still lagged behind the
measures such as short-time work people, young people average employment rate of the total
arrangements in difficult times. In and migrants is needed workforce by 6 and 9 pps respec-
addition, the newly unemployed need tively. Those aged 50-64 years saw
to be supported to return as quickly The resilience of an economy depends in a large increase in their employment
as possible to employment, through part on ensuring continuous wide-ranging rate overall, but with big differences
appropriate activation and support labour market participation for all groups between those aged 50-59 – with a
58
measures. Policies addressed specifi- of workers. However, over time ( ), con- rate of over 70 % – and those aged
cally at the long-term unemployed can vergence in this respect has only been 60-64 – with a rate of less than 35 %
then be most effectively deployed. seen for some groups (Chart 23). in 2013.
58
( ) Unfortunately, no comparative data is
available prior to 2002.
26
