Page 76 - ePaper
P. 76
Employment and Social Developments in Europe 2014
to make their labour markets more flex- Chart 55: Transition rates: from unemployment
ible and, to some extent, more inclusive. In to employment and vice versa, 2012
this respect, activation and the flexicurity
89
model ( ) were seen as the guiding princi- 12 2012
ples at both EU and national levels (Euro- 10 ES
ture ( ) did not always increase in Transition rate from employment to unemployment, % 8 6 4 EL BG IT PT SI EU-27 LT PL LV FR HU CY DK AT
pean Commission, 2007), while reforms
of pensions and actions to encourage
older workers to remain active longer
were also part of the agenda.
As the crisis developed, however, active
labour market policy (ALMP) expendi-
90
response to the rising unemployment 2 DE BE MT FI SK UK RO LU CZ EE SE NL
trend due to fiscal consolidation in 0 15 20 25 30 35 40 45 50 55
many countries in 2010 and 2011 Transition rate from unemployment to employment, %
(Section 5.3.1).
Source: DG EMPL calculations based on Eurostat, EU-SILC; transition rates, between 2011 and 2012,
An effective welfare support system can ages 15–74. Note: 2011 values used for RO, SE and SK.
also play an important role in enabling
people who lose their jobs to seek and 5.2. Employment had previously increased (Belgium and
obtain new employment. Data from 2012 protection legislation: Germany) or decreased (Austria, Finland,
shows that the Member States with the reductions with results Poland and Sweden). Only Ireland saw
highest transition rates out of unem- still pending the upward trend between 2000 and
ployment and lowest transitions rates 2008 continue after 2008.
into unemployment (namely the Neth- 5.2.1. Employment protection
erlands, Sweden, Austria and Denmark; legislation (EPL) has been While EPL has been an important
Chart 55) had all invested heavily in sup- loosened further in some component of recent labour market
port and activation measures (see Sec- Member States and the gap reforms ( ), it is difficult to measure
94
tion 5.4). Likewise, countries such as the between EPL for permanent the impact of any such policy changes
Netherlands, Sweden and Czech Republic and temporary contracts has given the very low level of labour
all had adequate unemployment benefits been narrowing demand in many countries, although
with a strong activation component (Euro - there is some evidence indicating that
pean Commission, 2012a). Employment protection legislation (EPL) selected EPL reforms have been fol-
can be seen as a set of rules governing lowed by lower shares of temporary
91
We examine what happened to labour the hiring and firing ( )of employees with contracts and increased job-finding
95
market institutions during the crisis and the aim of providing workers with certain rates after a certain period ( ). More
whether their configuration prior to and levels of protection and security in terms generally, the OECD (2013b) notes
during the crisis appeared to have a (posi - of their jobs by specifying the require- that ‘the evidence also suggests that
tive) impact on labour market outcomes. ments that employers need to respect if reforms involving the relaxation of
they need to make workers redundant. overly strict regulatory provisions on
individual and collective dismissals
Chart 56 groups 18 Member States ( ) are likely to increase the number of
92
96
89
( ) Flexicurity is an integrated strategy for according to the rigour of their employ- dismissed workers’ ( ) while the ILO
enhancing, at the same time, flexibility and ment protection legislation (EPL) in terms (ILO, 2014b) ( ) argues that there are
97
security in the labour market. It attempts
to reconcile employers’ needs for a flexible of permanent contracts (individual and signs that more flexible labour mar-
workforce with workers’ needs for security collective dismissals) prior to, and dur- kets (i.e. lower levels of EPL strictness)
– confidence that they will not face long
periods of unemployment. Its components ing, the recession. It shows that in most do not necessarily lead to reductions
include: (1) Flexible and reliable contractual Member States there has been a down- of unemployment.
arrangements; comprehensive lifelong learning
(LLL) strategies; effective active labour ward trend in the strictness of EPL since
market policies (ALMP); modern social security 2000 but with considerable variations In terms of the strictness of EPL, the
systems that provide adequate income support, 93
encourage employment and facilitate labour between countries ( ). Several Mem- gap between permanent contracts
market mobility including broad coverage of ber States saw their previous trends compared with temporary or fixed-
social protection provisions (unemployment
benefits, pensions and healthcare) that help of EPL halt during the crisis, whether it term contracts continued to narrow
people combine work with private and family during the recession (2008-11) in five
responsibilities such as childcare. ( ) The hiring rules are the conditions for the
91
90
( ) Source: The LMP database includes use of standard and non-standard labour Member States and widened in another
expenditures on demand side measures contracts. The firing rules are the rules
94
and a richer level of details of policies. on individual and collective dismissals of ( ) EMCO Labour market report 2014.
Investment into support measures for workers on standard permanent contracts. ( ) LABREF report (2012).
95
the unemployed is likely to produce good 92 96
resilience to increases in unemployment ( ) Those Member States for which data is ( ) OECD Employment Outlook 2013b, p. 107
97
levels, ensuring that the short-term available for the 2000–13 period. ( ) Aleksynska, M., Deregulating labour markets:
93
unemployed and vulnerable groups do not ( ) OECD EPL indicators Version 1 used here how robust is the analysis of recent IMF
stay unemployed for too long and mostly in order to be able to have access to values working papers, International Labour Office,
active and mostly passive unemployment prior to 2008. EPL V3 is used elsewhere Conditions of Work and Employment Branch,
measures are key in ensuring this. in the chapter. ILO, Geneva, 2014.
74
to make their labour markets more flex- Chart 55: Transition rates: from unemployment
ible and, to some extent, more inclusive. In to employment and vice versa, 2012
this respect, activation and the flexicurity
89
model ( ) were seen as the guiding princi- 12 2012
ples at both EU and national levels (Euro- 10 ES
ture ( ) did not always increase in Transition rate from employment to unemployment, % 8 6 4 EL BG IT PT SI EU-27 LT PL LV FR HU CY DK AT
pean Commission, 2007), while reforms
of pensions and actions to encourage
older workers to remain active longer
were also part of the agenda.
As the crisis developed, however, active
labour market policy (ALMP) expendi-
90
response to the rising unemployment 2 DE BE MT FI SK UK RO LU CZ EE SE NL
trend due to fiscal consolidation in 0 15 20 25 30 35 40 45 50 55
many countries in 2010 and 2011 Transition rate from unemployment to employment, %
(Section 5.3.1).
Source: DG EMPL calculations based on Eurostat, EU-SILC; transition rates, between 2011 and 2012,
An effective welfare support system can ages 15–74. Note: 2011 values used for RO, SE and SK.
also play an important role in enabling
people who lose their jobs to seek and 5.2. Employment had previously increased (Belgium and
obtain new employment. Data from 2012 protection legislation: Germany) or decreased (Austria, Finland,
shows that the Member States with the reductions with results Poland and Sweden). Only Ireland saw
highest transition rates out of unem- still pending the upward trend between 2000 and
ployment and lowest transitions rates 2008 continue after 2008.
into unemployment (namely the Neth- 5.2.1. Employment protection
erlands, Sweden, Austria and Denmark; legislation (EPL) has been While EPL has been an important
Chart 55) had all invested heavily in sup- loosened further in some component of recent labour market
port and activation measures (see Sec- Member States and the gap reforms ( ), it is difficult to measure
94
tion 5.4). Likewise, countries such as the between EPL for permanent the impact of any such policy changes
Netherlands, Sweden and Czech Republic and temporary contracts has given the very low level of labour
all had adequate unemployment benefits been narrowing demand in many countries, although
with a strong activation component (Euro - there is some evidence indicating that
pean Commission, 2012a). Employment protection legislation (EPL) selected EPL reforms have been fol-
can be seen as a set of rules governing lowed by lower shares of temporary
91
We examine what happened to labour the hiring and firing ( )of employees with contracts and increased job-finding
95
market institutions during the crisis and the aim of providing workers with certain rates after a certain period ( ). More
whether their configuration prior to and levels of protection and security in terms generally, the OECD (2013b) notes
during the crisis appeared to have a (posi - of their jobs by specifying the require- that ‘the evidence also suggests that
tive) impact on labour market outcomes. ments that employers need to respect if reforms involving the relaxation of
they need to make workers redundant. overly strict regulatory provisions on
individual and collective dismissals
Chart 56 groups 18 Member States ( ) are likely to increase the number of
92
96
89
( ) Flexicurity is an integrated strategy for according to the rigour of their employ- dismissed workers’ ( ) while the ILO
enhancing, at the same time, flexibility and ment protection legislation (EPL) in terms (ILO, 2014b) ( ) argues that there are
97
security in the labour market. It attempts
to reconcile employers’ needs for a flexible of permanent contracts (individual and signs that more flexible labour mar-
workforce with workers’ needs for security collective dismissals) prior to, and dur- kets (i.e. lower levels of EPL strictness)
– confidence that they will not face long
periods of unemployment. Its components ing, the recession. It shows that in most do not necessarily lead to reductions
include: (1) Flexible and reliable contractual Member States there has been a down- of unemployment.
arrangements; comprehensive lifelong learning
(LLL) strategies; effective active labour ward trend in the strictness of EPL since
market policies (ALMP); modern social security 2000 but with considerable variations In terms of the strictness of EPL, the
systems that provide adequate income support, 93
encourage employment and facilitate labour between countries ( ). Several Mem- gap between permanent contracts
market mobility including broad coverage of ber States saw their previous trends compared with temporary or fixed-
social protection provisions (unemployment
benefits, pensions and healthcare) that help of EPL halt during the crisis, whether it term contracts continued to narrow
people combine work with private and family during the recession (2008-11) in five
responsibilities such as childcare. ( ) The hiring rules are the conditions for the
91
90
( ) Source: The LMP database includes use of standard and non-standard labour Member States and widened in another
expenditures on demand side measures contracts. The firing rules are the rules
94
and a richer level of details of policies. on individual and collective dismissals of ( ) EMCO Labour market report 2014.
Investment into support measures for workers on standard permanent contracts. ( ) LABREF report (2012).
95
the unemployed is likely to produce good 92 96
resilience to increases in unemployment ( ) Those Member States for which data is ( ) OECD Employment Outlook 2013b, p. 107
97
levels, ensuring that the short-term available for the 2000–13 period. ( ) Aleksynska, M., Deregulating labour markets:
93
unemployed and vulnerable groups do not ( ) OECD EPL indicators Version 1 used here how robust is the analysis of recent IMF
stay unemployed for too long and mostly in order to be able to have access to values working papers, International Labour Office,
active and mostly passive unemployment prior to 2008. EPL V3 is used elsewhere Conditions of Work and Employment Branch,
measures are key in ensuring this. in the chapter. ILO, Geneva, 2014.
74
