Page 32 - ePaper
P. 32
Employment and Social Developments in Europe 2014
to offset the likely impact of a declining worsening of the existing labour market From an individual perspective, choosing
working-age population. polarisation which would further inhibit which specific skills to acquire in addition
the realisation of the EU’s employment to crucial transversal competences is an
At the same time, demographic trends goals in 2020 and beyond. important factor for a successful working
characterised by ageing populations and life. Likewise, from the perspective of the
changing family structures are expected 4.2. Job and wage economy, it is necessary to improve the
to create new jobs in the health and polarisation: a pre-crisis ability to forecast future skills demand,
care sectors, while the ‘greening’ of the trend that has continued ensure effective labour market matching,
economy and a more intensive use of ICT promote the adaptability of enterprises and
could result in profound changes in the Even before the crisis there was evi- workers to change and develop new sec-
skill profiles that employers want, and dence of an increasing polarisation in tors with sustainable job-creation potential.
74
employees need ( ). the labour market, with new jobs being
concentrated at the high and low ends Many low-skilled jobs will continue to
Nevertheless, there are limits to this of the skill and income scale, notably in exist but will nevertheless require greater
positive outlook in that the benefits the expanding service sectors, with a pre - literacy, numeracy and other basic skills.
of these transformations can only be dominance of better-paid jobs. Equally, the availability of more high-
sustained by a virtuous circle of con- skilled jobs will not guarantee that all
tinuous innovation, supporting strong The intensity of the 2008 recession and graduates find appropriate work unless
knowledge-intensive and technology- the consequent job reallocations destroyed the content of tertiary education is
intensive enterprise sectors backed many medium-paid jobs in manufactur- aligned with new needs.
by expanding international trade and ing and construction (Chart 29) while,
appropriate human capital investment. at the same time, the educational and 4.3. A major role
Moreover, work organisation that sup- skills profiles in the new service-based for lifelong learning
ports the adaptability of firms to these jobs structures have tended to be more
transformations is seen to be required demanding, limiting the chances of re- To ensure a virtuous circle of continuous
(see Chapter 3 of this issue). employment for those who had lost their innovation supporting a strong knowl-
jobs during the recession. edge-intensive and technology-intensive
At the same time it has to be recognised enterprise sector, a strong and continu-
that, along the way, many existing jobs This experience highlights the impor- ous investment in human capital is clearly
will inevitably be destroyed and there tance of addressing wage-related issues necessary. This means not only investing
is no automatic guarantee concerning in terms of factors such as wage-setting in initial education and training systems,
the impact of such changes on overall mechanisms and the income security but also ensuring that the skills people
75
job quality. Skill mismatches ( ), gaps implications of low wages; and the need acquire are used and maintained over
and shortages are liable to be issues in for up-skilling and re-skilling of the work- their life course. In this respect, all stake-
77
this respect, with the risk of a potential force at all levels ( ). holders have an important role to play ( ).
76
Chart 29: Polarisation of jobs in the EU, 1998-2010, and 2008-12
1 000 200
1998-2007 150
2008-10 2008Q2-2010Q2
500 100 2011Q2-2013Q2
50
0 0
-50
% -100
-500
-150
-200
-1 000 -250
-300
-1 500 -350
Lowest 2 3 4 Highest Lowest 2 3 4 Highest
quintile quintile quintile quintile
Source: European Commission (2011a). Source: Eurofound (2014), Drivers of recent job polarisation and
Note: The Chart shows the annual average change in absolute employment by upgrading in Europe: European Jobs Monitor 2014, Publications
wage quintile, in thousands. Office of the European Union, Luxembourg.
74
( ) See also Chapter 1, ‘EU employment in
a global context: where will new jobs
come from and what will they look like?’
in European Commission (2014a) and
Chapter 3, ‘The Future of Work in Europe: ( ) See Chapter 1, ‘Shifts in the job structure
76
Job Quality and Work Organization for a in Europe during the recession’ in
Smart, Sustainable and Inclusive Growth’, European Commission (2011a) and Box 3, ( ) For example, social partners identify skills
77
of this review. ‘Employment polarisation in the crisis’, in gaps and need, develop joint curricula, and
( ) See also Section 2.2. European Commission (2013d). provide training through paritarian funds.
75
30
to offset the likely impact of a declining worsening of the existing labour market From an individual perspective, choosing
working-age population. polarisation which would further inhibit which specific skills to acquire in addition
the realisation of the EU’s employment to crucial transversal competences is an
At the same time, demographic trends goals in 2020 and beyond. important factor for a successful working
characterised by ageing populations and life. Likewise, from the perspective of the
changing family structures are expected 4.2. Job and wage economy, it is necessary to improve the
to create new jobs in the health and polarisation: a pre-crisis ability to forecast future skills demand,
care sectors, while the ‘greening’ of the trend that has continued ensure effective labour market matching,
economy and a more intensive use of ICT promote the adaptability of enterprises and
could result in profound changes in the Even before the crisis there was evi- workers to change and develop new sec-
skill profiles that employers want, and dence of an increasing polarisation in tors with sustainable job-creation potential.
74
employees need ( ). the labour market, with new jobs being
concentrated at the high and low ends Many low-skilled jobs will continue to
Nevertheless, there are limits to this of the skill and income scale, notably in exist but will nevertheless require greater
positive outlook in that the benefits the expanding service sectors, with a pre - literacy, numeracy and other basic skills.
of these transformations can only be dominance of better-paid jobs. Equally, the availability of more high-
sustained by a virtuous circle of con- skilled jobs will not guarantee that all
tinuous innovation, supporting strong The intensity of the 2008 recession and graduates find appropriate work unless
knowledge-intensive and technology- the consequent job reallocations destroyed the content of tertiary education is
intensive enterprise sectors backed many medium-paid jobs in manufactur- aligned with new needs.
by expanding international trade and ing and construction (Chart 29) while,
appropriate human capital investment. at the same time, the educational and 4.3. A major role
Moreover, work organisation that sup- skills profiles in the new service-based for lifelong learning
ports the adaptability of firms to these jobs structures have tended to be more
transformations is seen to be required demanding, limiting the chances of re- To ensure a virtuous circle of continuous
(see Chapter 3 of this issue). employment for those who had lost their innovation supporting a strong knowl-
jobs during the recession. edge-intensive and technology-intensive
At the same time it has to be recognised enterprise sector, a strong and continu-
that, along the way, many existing jobs This experience highlights the impor- ous investment in human capital is clearly
will inevitably be destroyed and there tance of addressing wage-related issues necessary. This means not only investing
is no automatic guarantee concerning in terms of factors such as wage-setting in initial education and training systems,
the impact of such changes on overall mechanisms and the income security but also ensuring that the skills people
75
job quality. Skill mismatches ( ), gaps implications of low wages; and the need acquire are used and maintained over
and shortages are liable to be issues in for up-skilling and re-skilling of the work- their life course. In this respect, all stake-
77
this respect, with the risk of a potential force at all levels ( ). holders have an important role to play ( ).
76
Chart 29: Polarisation of jobs in the EU, 1998-2010, and 2008-12
1 000 200
1998-2007 150
2008-10 2008Q2-2010Q2
500 100 2011Q2-2013Q2
50
0 0
-50
% -100
-500
-150
-200
-1 000 -250
-300
-1 500 -350
Lowest 2 3 4 Highest Lowest 2 3 4 Highest
quintile quintile quintile quintile
Source: European Commission (2011a). Source: Eurofound (2014), Drivers of recent job polarisation and
Note: The Chart shows the annual average change in absolute employment by upgrading in Europe: European Jobs Monitor 2014, Publications
wage quintile, in thousands. Office of the European Union, Luxembourg.
74
( ) See also Chapter 1, ‘EU employment in
a global context: where will new jobs
come from and what will they look like?’
in European Commission (2014a) and
Chapter 3, ‘The Future of Work in Europe: ( ) See Chapter 1, ‘Shifts in the job structure
76
Job Quality and Work Organization for a in Europe during the recession’ in
Smart, Sustainable and Inclusive Growth’, European Commission (2011a) and Box 3, ( ) For example, social partners identify skills
77
of this review. ‘Employment polarisation in the crisis’, in gaps and need, develop joint curricula, and
( ) See also Section 2.2. European Commission (2013d). provide training through paritarian funds.
75
30
