Page 49 - ePaper
P. 49
Chapter 1: The legacy of the crisis: resilience and challenges
Chart 10: Transition rates from temporary to permanent employment, temporary to permanent contracts, and
a low share of involuntary temporary
temporary or self-employment and unemployment or inactivity 29
(2011/12) and share of involuntary temporary employment (2012) contracts ( ). In countries such as Spain,
France, Greece or Italy, though, there are
Transition rate Unemployment or inactivity Share of involuntary low transition rates to permanent jobs
from temporary Temporary or self-employment temporary employment and a high share of involuntary tempo-
employment into: Permanent employment
100 rary contracts, with detrimental conse-
90 quences for the employees’ chances to
80 access stable and better paid jobs with
70 appropriate social protection as well as
the opportunity to participate in lifelong
60 learning ( ). This can also be seen in the
30
% 50 share of temporary workers becoming
40 unemployed or inactive in the following
30 year (around 25 % in Portugal and
20 Greece, and 30 % or more in Denmark
10 and Spain).
0
UK AT BE SE DE SI HU CZ LU FI PT CY DK EU-28 PL IT EL NL ES FR
An analysis by OECD (2014b) ( 31 ) reported
Source: Eurostat, EU-LFS (lfsa_etgar) and EU-SILC (ilc_lvhl32). Exception to the reference year: some positive ‘stepping-stone effects for
Sweden (2010/2011 instead of 2011/2012).
non-standard work’ in many countries but
also confirmed that a temporary job often
to 19.5 % in 2013, with an increase in began to hire again. High shares of tem - involves wage penalties and a greater likeli -
the number of part-time jobs at a time porary contracts in total employment hood of becoming unemployed or inactive
when the number of full-time positions may increase employment volatility in the following year, especially in the case of
23
25
was falling ( ). Moreover, there has been times of economic downturn ( ). young people.
a sharp increase in the number of men
working part-time. The rise in the share Moreover, temporary contracts are People unable to find a regular job may
of part-time jobs also partly reflected associated, in some countries, with pro- turn to undeclared work or accept work
24
a sectoral composition effect ( ). At nounced labour market segmentation, with ‘envelope’ wages, see European
EU level, the share of involuntary part- with a negative correlation between Commission (2013). However, since unde -
time workers (those who work part-time the overall share of temporary workers clared work is often a last resort choice,
because they are unable to find full-time and the transition rates towards perma- it is strongly correlated with long-term
26
work) has increased strongly between nent jobs ( ). As evidenced in European unemployment, raising a range of policy
2007 (22.4 %) and 2013 (29.6 %). Commission (2012a) ( ), temporary issues in terms of labour rights, entitle-
27
contracts often carry a wage penalty ment to social protection, future pen-
On the other hand, the overall share which is a particular concern in countries sions and workers’ rights (see Annex 3,
of temporary contracts among total when the share of involuntary tempo- Extract 1).
rary work is high and transition rates
employment has slightly declined
since 2007 (from 14.6 % to 13.8 %), towards better paid or permanent con- Significant increases in poverty
although with wide variations across tracts are low. and social exclusion
Member States (see Chart 9). In countries
like Portugal and Spain, which previously However, the usage and impact of tem- Poverty and social exclusion in the EU has
had high shares of temporary contracts, porary contracts varies across Mem- almost inevitably worsened during the crisis
these served as an initial adjustment ber States. In some countries (e.g. Austria with little signs of improvement so far. The
mechanism to the shock — while in other and to some extent, Germany) tempo- situation worsened even further in some
countries such contracts were also the rary contracts seem to act as a stepping countries in 2013, notably in countries
first to grow, as risk-averse employers stone ( ) with high transition rates from where it was already high.
28
25
( ) Member States which had below EU average
shares of temporary contracts in 2007
saw either a relatively small increase in
unemployment during the recession e.g.
United Kingdom, Austria, Czech Republic,
Germany or a fall in their unemployment rate
following a substantial initial increase as in ( ) In the Netherlands the share involuntary
29
Estonia, Latvia, Slovakia, Ireland and Hungary. temporary contracts is also low and while
( ) Correlation coefficient –0.69 in 2011/12 most of the temporary workers remain in
26
(significant at 1 %). that status the year later, a rather low share
( ) European Commission (2012a), Chapter 4, (8.5 % compared to 19.3 % at EU level) fall
27
23
( ) Over 2008–13, the absolute number of Table 2. into unemployment or inactivity.
30
part-time jobs has increased by 3.1 million ( ) Another sign of stepping stone effect is ( ) For instance, OECD (2014a), Employment
28
(or +8 %) while the number of full-time that, in those two countries, the share of Outlook, shows, based on PIAAC data, that
positions declined by 9.4 million (or –5.2 %). temporary contracts is high for young people on average being on temporary contracts
24
( ) Some sectors (Administrative and support (due to apprenticeship systems) but much reduces the probability of receiving
service activities, Human health and social lower for the older age groups, whereas in employer-sponsored training by 14 %.
31
work activities, education) that were less countries such as Spain, Poland or Portugal ( ) OECD (2014b), ‘Jobs, Wages and Inequality
affected by the crisis had a relatively high the share of temporary workers remains and the Role of Non-Standard Work’,
share of part-time jobs. high (>20 %) among those aged 25–49. forthcoming.
47
Chart 10: Transition rates from temporary to permanent employment, temporary to permanent contracts, and
a low share of involuntary temporary
temporary or self-employment and unemployment or inactivity 29
(2011/12) and share of involuntary temporary employment (2012) contracts ( ). In countries such as Spain,
France, Greece or Italy, though, there are
Transition rate Unemployment or inactivity Share of involuntary low transition rates to permanent jobs
from temporary Temporary or self-employment temporary employment and a high share of involuntary tempo-
employment into: Permanent employment
100 rary contracts, with detrimental conse-
90 quences for the employees’ chances to
80 access stable and better paid jobs with
70 appropriate social protection as well as
the opportunity to participate in lifelong
60 learning ( ). This can also be seen in the
30
% 50 share of temporary workers becoming
40 unemployed or inactive in the following
30 year (around 25 % in Portugal and
20 Greece, and 30 % or more in Denmark
10 and Spain).
0
UK AT BE SE DE SI HU CZ LU FI PT CY DK EU-28 PL IT EL NL ES FR
An analysis by OECD (2014b) ( 31 ) reported
Source: Eurostat, EU-LFS (lfsa_etgar) and EU-SILC (ilc_lvhl32). Exception to the reference year: some positive ‘stepping-stone effects for
Sweden (2010/2011 instead of 2011/2012).
non-standard work’ in many countries but
also confirmed that a temporary job often
to 19.5 % in 2013, with an increase in began to hire again. High shares of tem - involves wage penalties and a greater likeli -
the number of part-time jobs at a time porary contracts in total employment hood of becoming unemployed or inactive
when the number of full-time positions may increase employment volatility in the following year, especially in the case of
23
25
was falling ( ). Moreover, there has been times of economic downturn ( ). young people.
a sharp increase in the number of men
working part-time. The rise in the share Moreover, temporary contracts are People unable to find a regular job may
of part-time jobs also partly reflected associated, in some countries, with pro- turn to undeclared work or accept work
24
a sectoral composition effect ( ). At nounced labour market segmentation, with ‘envelope’ wages, see European
EU level, the share of involuntary part- with a negative correlation between Commission (2013). However, since unde -
time workers (those who work part-time the overall share of temporary workers clared work is often a last resort choice,
because they are unable to find full-time and the transition rates towards perma- it is strongly correlated with long-term
26
work) has increased strongly between nent jobs ( ). As evidenced in European unemployment, raising a range of policy
2007 (22.4 %) and 2013 (29.6 %). Commission (2012a) ( ), temporary issues in terms of labour rights, entitle-
27
contracts often carry a wage penalty ment to social protection, future pen-
On the other hand, the overall share which is a particular concern in countries sions and workers’ rights (see Annex 3,
of temporary contracts among total when the share of involuntary tempo- Extract 1).
rary work is high and transition rates
employment has slightly declined
since 2007 (from 14.6 % to 13.8 %), towards better paid or permanent con- Significant increases in poverty
although with wide variations across tracts are low. and social exclusion
Member States (see Chart 9). In countries
like Portugal and Spain, which previously However, the usage and impact of tem- Poverty and social exclusion in the EU has
had high shares of temporary contracts, porary contracts varies across Mem- almost inevitably worsened during the crisis
these served as an initial adjustment ber States. In some countries (e.g. Austria with little signs of improvement so far. The
mechanism to the shock — while in other and to some extent, Germany) tempo- situation worsened even further in some
countries such contracts were also the rary contracts seem to act as a stepping countries in 2013, notably in countries
first to grow, as risk-averse employers stone ( ) with high transition rates from where it was already high.
28
25
( ) Member States which had below EU average
shares of temporary contracts in 2007
saw either a relatively small increase in
unemployment during the recession e.g.
United Kingdom, Austria, Czech Republic,
Germany or a fall in their unemployment rate
following a substantial initial increase as in ( ) In the Netherlands the share involuntary
29
Estonia, Latvia, Slovakia, Ireland and Hungary. temporary contracts is also low and while
( ) Correlation coefficient –0.69 in 2011/12 most of the temporary workers remain in
26
(significant at 1 %). that status the year later, a rather low share
( ) European Commission (2012a), Chapter 4, (8.5 % compared to 19.3 % at EU level) fall
27
23
( ) Over 2008–13, the absolute number of Table 2. into unemployment or inactivity.
30
part-time jobs has increased by 3.1 million ( ) Another sign of stepping stone effect is ( ) For instance, OECD (2014a), Employment
28
(or +8 %) while the number of full-time that, in those two countries, the share of Outlook, shows, based on PIAAC data, that
positions declined by 9.4 million (or –5.2 %). temporary contracts is high for young people on average being on temporary contracts
24
( ) Some sectors (Administrative and support (due to apprenticeship systems) but much reduces the probability of receiving
service activities, Human health and social lower for the older age groups, whereas in employer-sponsored training by 14 %.
31
work activities, education) that were less countries such as Spain, Poland or Portugal ( ) OECD (2014b), ‘Jobs, Wages and Inequality
affected by the crisis had a relatively high the share of temporary workers remains and the Role of Non-Standard Work’,
share of part-time jobs. high (>20 %) among those aged 25–49. forthcoming.
47
