Page 31 - ePaper
P. 31
Job creation, productivity and more equality for sustained growth
insiders on permanent contracts versus Chart 27: EPL on regular employment and the share
outsiders on fixed-term contracts, often of temporary employment
young people, who run a high risk of in-
69
work poverty ( ). 30
Temporary contracts are not necessar- 25 ES PL
ily problematic if they serve a positive 20 NL PT
purpose, as for example when they SI SE FR
combine work and the acquirement of Share temporary jobs, 15-64y, 2013 15 FI
specific skills through training and learn - HU EL AT EU IT DE
ing by doing which could, for example, 10 IE DK CZ
allow young workers to move from a 5 UK SK BE LU
temporary contract to a more stable EE
employment relationship. Indeed, Chap- 0
ter 1 documents huge country differ- 1.0 1.5 2.0 2.5 3.0 3.5
ences not only in the share of temporary EPL regular, 2013
contracts but also in positive transitions. Source: OECD Employment and Labour Market Statistics, Strictness of employment protection legislation
(EU = median of available Member States), Version 3 and Eurostat, lfsa_etpgan.
Chart 27 shows that a high level of
employment protection for regular Chart 28: Share of technology- and knowledge-intensive jobs
employment, as measured by the OECD in total service sector employment
indicator, helps to explain the share of
temporary jobs. Nevertheless, attempts
to assess the effect of EPL reforms on 90
labour market outcomes are made diffi- 80 2000
cult by timing issues (lags), methodologi- 2012
cal issues and the problem of attempting 70
to do so in a period when the level of
labour demand in many countries remains % 60
very low (see also Turrini et al. , 2014). 50
Moreover, there is evidence that, in some 40
of the most resilient Member States, 30
their relatively high level of EPL is not
necessarily damaging to well-functioning 20 LU NL UK SE BE DK CY FR FI MT AT DE EU IE IT ES EL HU EE LV SK HR CZ BG LT PT SI PL RO
labour markets, while Member States
with relatively low levels of EPL do not Source: Eurostat, Science and technology, htec_emp_nat and htec_emp_nat2.
necessarily create more jobs. All this Note: 2000 and 2012 data are not fully comparable because of change-over in NACE code. Data
evidence suggests the need to take a are for 2011 instead of 2012 for UK and EU; 2002 and 2004 instead of 2000 for Croatia and
Poland respectively.
broader approach to the assessment of
the impact of EPL within different labour
market and social protection systems. services, lifelong learning and adequate 4. Job creation with
social security systems ( ), as well as productivity growth
71
The evidence suggests that the main possible fiscal policy changes ( ).
72
benefits of reforms designed to reduce 4.1. What sort of jobs
labour market segmentation tend to be More generally, while reforming EPL will be created?
in terms of providing better opportunities may be relevant in terms of reducing
to find jobs that match available skills segmentation, it is far from being the Technological progress, especially in key
and thereby improve longer-term career only way forward, with other actions – enabling technologies ( ) and informa-
73
prospects ( ). This suggests that, in order such as encouraging employers to use tion and communication technologies
70
to improve their effectiveness, changes internal flexibility for established workers (ICT), in combination with the forces of
in employment protection should be and work-training combinations for new globalisation, are widely seen as the
supported by a range of policies such or re-entrants – also being potentially basis for the creation of new higher qual -
as activation and training, employment positive options. ity jobs, which the EU could exploit to its
comparative advantage while enabling it
( ) See also “Segmentation of the EU labour to speed up productivity gains in order
69
markets” in European Commission (2012b).
70
( ) See Chapter 2 “Reducing labour market
segmentation by supporting transitions:
73
towards a new momentum for flexicurity” 71 ( ) Key enabling technologies (KETs) enable the
in European Commission Policy Review, ‘New ( ) Notably reforms in social protection that development of new goods and services
skills and jobs in Europe: Pathways towards are adequate to deal with the challenges and the restructuring of industrial processes
full employment’, Publications Office of the created by an increased job turnover as a needed to modernise EU industry and make
European Union, Luxembourg, 2012. result of lesser job protection. the transition to a knowledge-based and
72
http://ec.europa.eu/research/social-sciences/ ( ) Notably, assessing the tax wedge on low- low-carbon resource-efficient economy
pdf/new-skils-and-jobs-in-europe_en.pdf paid workers. (European Commission, 2012a).
29
insiders on permanent contracts versus Chart 27: EPL on regular employment and the share
outsiders on fixed-term contracts, often of temporary employment
young people, who run a high risk of in-
69
work poverty ( ). 30
Temporary contracts are not necessar- 25 ES PL
ily problematic if they serve a positive 20 NL PT
purpose, as for example when they SI SE FR
combine work and the acquirement of Share temporary jobs, 15-64y, 2013 15 FI
specific skills through training and learn - HU EL AT EU IT DE
ing by doing which could, for example, 10 IE DK CZ
allow young workers to move from a 5 UK SK BE LU
temporary contract to a more stable EE
employment relationship. Indeed, Chap- 0
ter 1 documents huge country differ- 1.0 1.5 2.0 2.5 3.0 3.5
ences not only in the share of temporary EPL regular, 2013
contracts but also in positive transitions. Source: OECD Employment and Labour Market Statistics, Strictness of employment protection legislation
(EU = median of available Member States), Version 3 and Eurostat, lfsa_etpgan.
Chart 27 shows that a high level of
employment protection for regular Chart 28: Share of technology- and knowledge-intensive jobs
employment, as measured by the OECD in total service sector employment
indicator, helps to explain the share of
temporary jobs. Nevertheless, attempts
to assess the effect of EPL reforms on 90
labour market outcomes are made diffi- 80 2000
cult by timing issues (lags), methodologi- 2012
cal issues and the problem of attempting 70
to do so in a period when the level of
labour demand in many countries remains % 60
very low (see also Turrini et al. , 2014). 50
Moreover, there is evidence that, in some 40
of the most resilient Member States, 30
their relatively high level of EPL is not
necessarily damaging to well-functioning 20 LU NL UK SE BE DK CY FR FI MT AT DE EU IE IT ES EL HU EE LV SK HR CZ BG LT PT SI PL RO
labour markets, while Member States
with relatively low levels of EPL do not Source: Eurostat, Science and technology, htec_emp_nat and htec_emp_nat2.
necessarily create more jobs. All this Note: 2000 and 2012 data are not fully comparable because of change-over in NACE code. Data
evidence suggests the need to take a are for 2011 instead of 2012 for UK and EU; 2002 and 2004 instead of 2000 for Croatia and
Poland respectively.
broader approach to the assessment of
the impact of EPL within different labour
market and social protection systems. services, lifelong learning and adequate 4. Job creation with
social security systems ( ), as well as productivity growth
71
The evidence suggests that the main possible fiscal policy changes ( ).
72
benefits of reforms designed to reduce 4.1. What sort of jobs
labour market segmentation tend to be More generally, while reforming EPL will be created?
in terms of providing better opportunities may be relevant in terms of reducing
to find jobs that match available skills segmentation, it is far from being the Technological progress, especially in key
and thereby improve longer-term career only way forward, with other actions – enabling technologies ( ) and informa-
73
prospects ( ). This suggests that, in order such as encouraging employers to use tion and communication technologies
70
to improve their effectiveness, changes internal flexibility for established workers (ICT), in combination with the forces of
in employment protection should be and work-training combinations for new globalisation, are widely seen as the
supported by a range of policies such or re-entrants – also being potentially basis for the creation of new higher qual -
as activation and training, employment positive options. ity jobs, which the EU could exploit to its
comparative advantage while enabling it
( ) See also “Segmentation of the EU labour to speed up productivity gains in order
69
markets” in European Commission (2012b).
70
( ) See Chapter 2 “Reducing labour market
segmentation by supporting transitions:
73
towards a new momentum for flexicurity” 71 ( ) Key enabling technologies (KETs) enable the
in European Commission Policy Review, ‘New ( ) Notably reforms in social protection that development of new goods and services
skills and jobs in Europe: Pathways towards are adequate to deal with the challenges and the restructuring of industrial processes
full employment’, Publications Office of the created by an increased job turnover as a needed to modernise EU industry and make
European Union, Luxembourg, 2012. result of lesser job protection. the transition to a knowledge-based and
72
http://ec.europa.eu/research/social-sciences/ ( ) Notably, assessing the tax wedge on low- low-carbon resource-efficient economy
pdf/new-skils-and-jobs-in-europe_en.pdf paid workers. (European Commission, 2012a).
29
