Category Archives: Social and employment situation in europe

Statistical data which can be compared at European level are essential for the monitoring of social and labour market developments in the European Union. They are used in particular to assess the impact of economic and demographic changes on the labour market. In this respect, the Commission has set up systems for collecting statistical information used to establish performance indicators. It also supports the analysis work undertaken by the Member States through the Community Programme for Employment and Solidarity, and the work of the European Employment Observatory. All this information is recorded in annual reports.

2009 Employment in Europe Report

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2009 Employment in Europe Report

Outline of the Community (European Union) legislation about 2009 Employment in Europe Report

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

2009 “Employment in Europe” Report

Document or Iniciative

Commission Report “Employment in Europe 2009” [Not published in the Official Journal].

Summary

The year 2009 has been marked by the international financial crisis, which hugely affected the labour markets, after many years of growth in employment in Europe.

Although European Union (EU) countries may have been affected in different ways, they have all experienced a decrease in job offers. The Commission observes that certain population groups are more affected by the job losses: lower-skilled young people, temporary workers and older workers.

Through the internal flexibility of companies (shorter working hours, temporary partial unemployment, etc.) and wage concessions by workers, certain countries were able to limit the job losses. However, in 2010, the unemployment rate was expected to reach 11% in the EU.

In this context, European policies have a particular role to play. They must help to preserve jobs, help people into employment and support the most vulnerable. In addition, the Lisbon Strategy cycle comes to an end in 2010, and the EU must also develop new policy priorities in order to prepare for the transition to a low-carbon “green” economy.

Analysis of labour markets

European labour markets are relatively dynamic, which indicates that job offers correspond to demand. In fact in all the EU countries, workers can change job (22% per year), return to work or leave unemployment with relative ease.

However, long-term unemployment persists for certain population groups; it continues for more than a year for 45% of people affected. The most vulnerable people are women, older and low-skilled workers. To tackle this type of unemployment, the Commission recommends recourse to appropriate employment policies, based on the principles of flexicurity.

Climate change and the development of labour markets

The EU must adopt policies aimed at developing a competitive low-carbon economy. This transition towards a green economy must have a positive impact on the labour market, specifically through:

  • the construction of new infrastructures;
  • the development of new technologies;
  • direct employment in the renewable energy sector (production, installation and maintenance);
  • the development of new service sectors.

Forecasts indicate that the sustainable development sector could create between 2.3 and 2.8 million jobs between now and 2020.

Initially, high-skilled workers will benefit from the jobs created. Education and training actions should then help to increase the general skills level in the labour markets.

The Commission also recommends the introduction of policies based on the principles of flexicurity, a respect for workers’ rights and an increase in social spending.

Finally, the Commission highlights the need to reinforce social dialogue and the assessment of labour markets.

Social and employment situation in europe

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Social and employment situation in europe

Outline of the Community (European Union) legislation about Social and employment situation in europe

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

Social and employment situation in europe

Statistical data which can be compared at European level are essential for the monitoring of social and labour market developments in the European Union. They are used in particular to assess the impact of economic and demographic changes on the labour market. In this respect, the Commission has set up systems for collecting statistical information used to establish performance indicators. It also supports the analysis work undertaken by the Member States through the Community Programme for Employment and Solidarity, and the work of the European Employment Observatory. All this information is recorded in annual reports.

REPORTS

  • 2009 “Employment in Europe” Report
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    (FR)
  • Employment in Europe Report 2007
  • Employment in Europe Report – 2006
  • Report on Employment in Europe 2005
  • Report on employment in Europe 2004
  • Joint employment report 2006/2007
  • Joint Employment Report 2005/2006
  • Joint Employment Report 2004/2005
  • Joint Report on Social Protection and Social Inclusion 2008
  • Joint Report on Social Protection and Social Inclusion: 2007
  • Joint Report on Social Protection and Social Inclusion 2006
  • Joint Report on Social Protection and Social Inclusion
  • Joint report on social inclusion

STATISTICS

  • Promoting solidarity between the generations
  • The demographic future of Europe – from challenge to opportunity
  • Green Paper “Confronting demographic change: a new solidarity between the generations”
  • Labour Force Sample Survey
  • Structural statistics on earnings and labour costs
  • European system of integrated social protection statistics (ESSPROS)
  • European Statistical Advisory Committee
  • European Statistical Governance Advisory Board

INFORMATION AND INCENTIVES

  • Community programme for employment and solidarity – PROGRESS (2007-2013)
  • European Progress Microfinance Facility (EPMF)
  • Programme for mutual learning in employment
  • European Employment Observatory (EEO)

Report on employment in Europe 2004

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Report on employment in Europe 2004

Outline of the Community (European Union) legislation about Report on employment in Europe 2004

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

Report on employment in Europe 2004

Document or Iniciative

Commission report on Employment in Europe 2004. Recent developments and prospects [Not published in the Official Journal].

Summary

Economic growth in the enlarged European Union slowed in 2003 whilst world growth accelerated, driven by the United States and Japan. As a result, employment growth in the EU in 2003 was virtually zero, unlike in the United States where jobs continued to be created steadily.

It is the most vulnerable sectors of the labour market in the European Union, especially the industrial sector, young people and the low skilled, that suffer most in this difficult situation. What is more, the employment situation is very uneven throughout the 25 Member States, with close to half of them seeing employment decline in 2003 and the other half enjoying employment growth of more than 1 %.

Employment is a key element of the Lisbon strategy, which is intended to increase the volume and enhance the quality of work and its role as a promoter of social inclusion and cohesion. The employment strategy is built around three quantitative objectives, namely an employment rate of 70 % for the entire population, 60 % for women and 50 % for older people by 2010. Although progress was made in 2003 in terms of women’s and especially older people’s employment, the employment rate as a whole stagnated at around 63 %.

In general, the failure to hit the Lisbon targets reflects the structural problems in the labour market in the various Member States. Radical reforms are required to enhance the prospects of employment for women, young people and older persons. At the same time, these efforts to increase the rate of employment must be accompanied by an increase in productivity and job quality.

The key factors in employment: institutions active labour market and policies (ALMPs)

To increase the rate of employment, it is crucial for the economy to open up to trade. However, in the current situation, two specific instruments may also need to be deployed: expenditure on ALMPs and the use of part-time work. As far as ALMPs are concerned, the report views the measures on behalf of young people and to improve public employment services as being particularly effective. Their positive impact on employment is even more marked in countries where unemployment and social security benefits are lower in comparison with income from employment.

However, the report plays down the long-term impact of tax incentives on employment. The level of taxation and social security contributions does not appear to affect the overall rate of employment appreciably, although it does have a detrimental effect on low-skilled employment. As a general rule, ALMPs are more effective where wage bargaining is coordinated at central or sectoral level than in decentralised bargaining systems.

Employment in services is lagging behind the United States

There is a considerable gap in employment in the services sector between the EU and the United States, where the sector accounts for a greater proportion of the labour market. This is particularly true in the case of women and older workers, which means that there is untapped potential for creating jobs in services. The highest job creation rates in the United States are for both the most highly and least skilled jobs, although some EU Member States are equally as dynamic in this area.

The differences in employment in services between Europe and the United States reflect radical differences in consumption patterns and the level of final demand. Easier access to work for women and older persons in the United States generates a greater demand for services which explains why jobs are being created more quickly in this sector. The less dynamic employment situation in the EU is accounted for less by inflexibility, which is frequently cited as an obstacle to creating low-skilled jobs, than by weak household consumption.

In order to better tap the potential for employment in services, it is up to the Member States to set up a genuine single market in services and also to redirect public investment towards creating relatively well-paid and highly-productive jobs in social education and health services.

Education and training to get people out of low-paid and insecure employment

The various types of contracts and new forms of recruitment enable enterprises to respond more effectively to demand in real time. However, this flexibility carries the risk of lower job security for certain workers, which can adversely affect productivity and equality of employment. Although it is possible to make the transition from a temporary or low-paid job to a more stable and better paid job in most cases, the rate of exclusion from the labour market is still very high for vulnerable workers. There are marked differences between the Member States for workers attempting to make the transition from unemployment to insecure employment and then to permanent employment.

Women, the low-skilled and older workers are more likely to have temporary contracts and are more vulnerable in terms of pay and advancement prospects. The report takes the view that qualifications and training offer the best opportunities of strengthening a person’s position in the labour market. As a rule, flexibility should not marginalise the most vulnerable workers. Active labour market policies must deploy public employment and training services to make it easier to gain access to and improve one’s position in the labour market.

Employment and globalisation

In terms of growth and employment, the European economies have benefited from integrating their markets and from the increasing pace of globalisation. In the short term, the 2004 enlargement should not have a significant effect on pay and employment in the EU. By contrast, technological progress and higher productivity in some sectors are likely to lead to more restructuring and relocation. Transitional policies must be implemented to enable workers who have been relocated or laid off to retrain or strengthen their position in the labour market.

The differences in pay vis-à-vis international competitors in some sectors will not necessarily result in job losses in the EU. Policies geared to productivity and research will enable flexible and highly qualified labour forces to reap the benefits of globalisation. EU companies will need to modernise to maintain their competitive edge if job security is to be safeguarded for everyone.

Context

Despite the efforts made to reform its labour markets, the EU is not on schedule to hit the employment targets set in Lisbon for 2010. The report’s priority recommendation is to encourage greater participation of women and older persons in the labour market, mainly by creating more jobs in services. Moreover, training and public employment services must be developed in order to strike a balance between flexibility and job security. The European employment strategy offers a suitable instrument for reinforcing national action on employment and harnessing globalisation for the benefit of the EU’s economic and social objective.

RELATED INSTRUMENTS

Report from the Commission (2003). Employment in Europe 2003 [Not published in the Official Journal]

Report from the Commission (2002). Employment in Europe 2002 [Not published in the Official Journal]

Report from the Commission (2001). Employment in Europe 2001 [Not published in the Official Journal]

Report from the Commission (2000). Employment in Europe 2000 [Not published in the Official Journal]

Report on Employment in Europe 2005

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Report on Employment in Europe 2005

Outline of the Community (European Union) legislation about Report on Employment in Europe 2005

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

Report on Employment in Europe 2005

Document or Iniciative

Commission Report on Employment in Europe 2005. Recent Trends and Prospects [Not published in the Official Journal].

Summary

In the course of 2004, economic activity in the European Union (EU) followed two different trends. Galvanised in the first half of the year, it was gradually weakened in the latter half. Two major reasons for this were the increase in oil prices and the strength of the euro.

Economic growth in the EU was noteworthy (2.4 % for 2004 compared with 1.1 % in 2003). In this respect, the significant increase in world GDP and trade seem to have served as a stimulus.

In line with the economic reality in Europe, employment growth once again showed signs of stagnation, despite the structural improvements made possible by the European Employment Strategy (EES). This has implications with regard to meeting the Lisbon and Stockholm objectives for 2010. There are inequalities between Member States in terms of income, particularly between the Europe of 15 and the new Member States.

Although there are significant variations from one Member State to another, in relation to gender and level of qualifications, unemployment * remains high on the whole across Europe. Nevertheless, the current trend is towards a reduction in the non-working population. A more worrying phenomenon is that the EU as a whole is not making optimum use of its potential labour force. Indeed, in the absence of targeted policies, the heterogeneity of the non-working population makes it difficult to match job supply and demand.

In light of this, the report recommends making growth and employment two key objectives of the revised Lisbon Strategy.

Employment: mixed results

For the third year in succession, employment rose by only a little in 2004 (0.6 %, which is 0.3 % higher than in 2003). The average rate of employment for the whole of the EU rose by 0.4 % to 63.3 %. Therefore, despite a slight improvement over previous years, the results continue to be disappointing compared with the situation in the USA, where employment growth reached 1.1 %.

The report identifies several factors which explain this slight increase in the overall employment rate. The first is the continued increase in the employment rate among women (+ 0.7 % on average in the EU). The second is the 0.8 % increase in the employment * rate among older people (aged 55 to 64 years). Third is the stabilisation of unemployment figures compared with 2003, despite a slight increase in the rate of long-term unemployment (0.1 %).

Lisbon and Stockholm: difficult objectives

According to the report, one of the major consequences of the poor health of the employment market in Europe is slow progress in meeting the Lisbon and Stockholm objectives. As a guide, it is estimated that overall employment rates (63.3 % in 2004) are still 7 % lower than the objective set for 2010. With regard more particularly to women and older people, employment rates (55.7 and 41.0 % in 2004) are respectively around 4 and 9 % lower than initially expected.

In light of the mixed results of recent years and the difficulties posed by the 2010 objectives, the European Council has taken action by agreeing to revise the Lisbon Strategy and refocus its priorities on economic growth and employment.

Disparities in employment across Member States

While growth in employment was relatively low at EU-level in 2004, it was generally positive in the majority of Member States. As indicated in the report, only four countries experienced negative annual growth. This was the case particularly in the Netherlands, where employment fell by 1.3 %. The other three countries were Hungary (-1.2 %), Latvia (-0.2 %) and Slovakia (-0.2 %). In contrast, seven Member States achieved positive employment growth of over 1 % (in particular Cyprus, Greece, Ireland, Luxembourg and Spain). In Germany, positive employment growth was restored, and Poland halted its decline in this field.

Different levels of growth

As indicated in the Commission report, employment growth depends on the sector and on the status and profile of the worker. Between 2003 and 2004, the services sector continued to drive employment expansion. In contrast, employment in both the agriculture and industry sectors continued to contract in 2004. The degree of flexibility of employment is also a factor, which is why the share of part-time and fixed-term employment increased. However, the share of self-employment remained stable. Finally, since 2000, there has been a steady increase (4.4 %) in employment rates among older people aged 55-64 in almost all Member States. Young people, on the other hand, have experienced a deterioration in the labour market situation. At 18.7 %, youth unemployment in the EU is almost twice as high as the overall unemployment rate. In response to this problem, the European Council recently adopted the European Pact for Youth.

Caution still necessary

The employment prospects for 2005 and 2006 are positive overall, with an improvement which, according to the report, is in line with the pick-up in economic activity. Nevertheless, caution still needs to be exercised, especially as future progress remains largely dependent on the return of sustained business confidence, rising economic growth and the implementation of structural reforms.

Taking stock of the EES

In its report, the Commission also focuses on the EES, whose application since 1997 has made possible a number of reforms in various sectors. This has led to structural improvements in employment at EU-level, as reflected in the following:

  • lower structural rates of unemployment in most Member States;
  • lower long-term unemployment rates;
  • shorter spells in unemployment;
  • better match between job supply and demand;
  • a rise in aggregate labour demand;
  • a wage formation process that takes better account of prevailing conditions in the economy and competitiveness constraints;
  • an increase in expenditure on labour market policies and on training.

Despite structural progress, unemployment remains high. Moreover, progress in terms of labour productivity and quality (education attainment levels, the transitions from temporary to permanent jobs and out of low-paid jobs) is mixed. Finally, while there have been some signs of improvement towards greater social cohesion (reduction of gaps related to gender and age and of inequalities), the recent economic slowdown (2001-2003) may change that.

Income: a two-speed Europe

Overall there has been no sign of an increase in earnings inequality in Europe since the 1970s. Yet the report highlights marked differences between Member States, with earnings disparities in old Member States between two and four times larger than in new Member States. There are also substantial earnings disparities within Member States, from one region to another or even from one sector to another. Moreover, as in the case of employment, income is also influenced by various factors: firms’ specificities (size, organisation, structure, activity), individual characteristics of workers (skills, profession, gender, age), institutional features (bargaining schemes, type of contract).

The report therefore advocates finding the right balance between efficiency and equity in wage policies, which would help to effectively solve any dilemma between social cohesion and growth objectives.

Potential labour supply from the inactive population

As indicated in the report, in 2004, the economically inactive population of working age (15-64) for all 25 Member States totalled 92 million, corresponding to an average inactivity rate * of over 30 %. This rate varies greatly from one country to another, ranging from a low of 19.9 % in Denmark to rates of around 40 % in Hungary (39.5) and in Malta (41.7).

Overall inactivity varies according to gender and level of qualifications, but less so according to age. Inactivity is around 16 percentage points lower for men than for women. Moreover, inactivity rates are over 47 % for the low-skilled against just over 13 % for the high-skilled. However, in terms of age, the inactive population is distributed evenly with one third in each of the three main age segments – youth, prime-age and older people, despite the fact that the prime-age group is the largest one.

The report identifies five reasons for inactivity in Europe:

  • participation in education and training, corresponding to around a third of the inactive population, mainly young people;
  • retirement (20 %);
  • family or personal responsibilities (approximately 16 %);
  • illness or disability (13 %);
  • not seeking employment (4.5 %).

The report also states that, in the long term, inactivity * is gradually declining as a result of two main trends:

  • the entry into the labour market of increasing numbers of women aged over 25;
  • older people of both sexes staying in the labour market for a longer period.

Between 2003 and 2004 around 9.5 % of the inactive population moved into employment, while a further 4 % joined the unemployed category. At the same time, 3 % of the employed and almost 22 % of the unemployed withdrew from the labour force. Figures show that the potential labour supply extends far beyond the unemployed; it also comprises a sizeable part of the inactive population. In several categories of the inactive population, the tendency to work equals even that of the unemployed.

Therefore, to use the inactive population as a potential labour supply, the report calls for more systematic use of various measures such as Active Labour Market Policies (ALMPs) and other measures supporting job creation and opportunities. More effective targeting is also a crucial factor in supporting their labour market participation.

Background

Given the close links between economic growth and labour market performance, the slowdown in economic growth in the EU had a significant negative impact on employment creation. The report therefore recommends making growth and employment two key objectives of the revised Lisbon Strategy.

Key terms used in the act
  • Unemployment: whereby someone without a job has been actively looking for work in the four weeks prior to the survey and is willing and available to work in the following two weeks.
  • Inactivity: whereby the individual is out of the labour force, i.e. those that are neither working nor actively seeking and immediately available for work.

Related Acts

Commission Report (2004). Employment in Europe 2004[Not published in the Official Journal]

Commission Report (2003). Employment in Europe 2003[Not published in the Official Journal]

Commission Report (2002). Employment in Europe 2002[Not published in the Official Journal]

Commission Report (2001). Employment in Europe 2001[Not published in the Official Journal]

Commission Report (2000). Employment in Europe 2000[Not published in the Official Journal]

Joint Report on Social Protection and Social Inclusion: 2007

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Joint Report on Social Protection and Social Inclusion: 2007

Outline of the Community (European Union) legislation about Joint Report on Social Protection and Social Inclusion: 2007

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social protection

Joint Report on Social Protection and Social Inclusion: 2007

Another Normative about Joint Report on Social Protection and Social Inclusion: 2007

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Employment and social policy > Social and employment situation in europe

Joint Report on Social Protection and Social Inclusion: 2007

Labour Force Sample Survey

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Labour Force Sample Survey

Outline of the Community (European Union) legislation about Labour Force Sample Survey

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

Labour Force Sample Survey

Document or Iniciative

Council Regulation (EC) No 577/98 of 9 March 1998 on the organisation of a labour force sample survey in the Community [See amending acts].

Summary

The development of European employment policy is based on comparable statistical information obtained in the Member States.

Each year European Union (EU) Member States conduct sample surveys of the labour forces in their population and the levels of under-employment *. The results of the statistical surveys are sent to the European Commission (Eurostat).

Data collection

The surveys are carried out using a sample of private households * or of persons residing in the country at the time of the survey. If possible, the survey is supplemented by information on persons living in collective households *.

Other collection means may be used if they produce information of an equivalent quality (such as the use of administrative records).

The Member States may make it compulsory to reply to the survey.

Representativeness of the information

Margins of error are planned in for the calculation of statistical data in Member States with a population of more than one million inhabitants. In addition, the weighting factors of results are calculated taking into account the characteristics of the population (age, sex, region, etc.).

Lastly, the methods of statistical imputation may be applied in cases where non-response to certain questions results in missing data.

Elements of the survey

Member States must provide Eurostat with whatever information is required concerning the organisation of the survey and its methodology (criteria adopted for the design and size of the sample). This information shall not include any direct identifiers of the person surveyed.

The survey must relate, in particular, to the following characteristics:

  • the characteristics of the person surveyed (sex, year of birth, marital status, etc.);
  • their principal and/or secondary activity (professional status, salary, country of employment, permanence of employment and the reasons, etc.);
  • their working time and their atypical hours of work;
  • their possible situation of underemployment;
  • their search for employment (type of employment sought, duration of search, method, etc.);
  • their possibilities for education and training;
  • their previous work experience;
  • their situation one year before the survey.

The Commission may decide to collect information on supplementary aspects not provided for in this Regulation.

Context

Regulation 577/98 repeals Regulation (EEC) No 3711/91.

Key terms used in the act
  • Private household: persons living in the same dwelling, namely family members, but also specifically long-term guests, lodgers and household staff.
  • Collective household: persons living in a non-institutional collective dwelling (such as boarding schools, dormitories of educational establishments, etc.) occupied by more than five persons who do not share household expenses.
  • Underemployment: the situation of persons working involuntarily less than the normal working time (for example, part-time workers) and those who are able to increase their hours of work, such as by taking on an additional job.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 577/98

15.3.1998

15.3.1998

L 77, 14.3.1998
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 1991/2002

10.11.2002

10.11.2002

OJ L 308, 9.11.2002

Regulation (EC) No 2104/2002

19.12.2002

19.12.2002

OJ L 324, 29.11.2002

Regulation (EC) No 2257/2003

12.01.2004

12.01.2004

OJ L 336, 23.12.2003

Regulation (EC) No 1372/2007

23.12.2007

–

OJ L 315, 3.12.2007

Regulation (EC) No 596/2009

18.6.2009

7.8.2009

OJ L 188, 18.7.2009

The successive amendments and corrections to Regulation (EC) No 577/98 have been incorporated into the original text. This consolidated versionis of documentary value only.

Related Acts

Methods of statistical calculations

Commission Regulation (EC) No 377/2008 of 25 April 2008 implementing Council Regulation (EC) No 577/98 on the organisation of a labour force sample survey in the Community as regards the codification to be used for data transmission from 2009 onwards, the use of a sub-sample for the collection of data on structural variables and the definition of the reference quarters (Text with EEA relevance).

Structural statistics on earnings and labour costs

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Structural statistics on earnings and labour costs

Outline of the Community (European Union) legislation about Structural statistics on earnings and labour costs

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

Structural statistics on earnings and labour costs

Document or Iniciative

Council Regulation (EC) No 530/1999 of 9 March 1999 concerning structural statistics on earnings and on labour costs [See amending act(s)].

Summary

National authorities and Eurostat cooperate to produce European statistics in order to compare labour costs and earnings in the European Union (EU).

Every four years, Eurostat produces statistical reports in these fields. They are used to develop European policies for enterprises and employees, and to analyse growth and economic and social cohesion in the EU.

Types of information collected

Regarding the level and composition of labour costs, the information must enable statistics to be produced on:

  • the enterprise or production unit on which the employees depend, and particularly on the region of settlement, its size and its sector of activity;
  • total annual labour costs (wages and salaries, social contributions, vocational training costs, etc.);
  • the average annual number of employees, including part-time employees and apprentices;
  • the annual number of hours worked and paid.

Concerning the structure and distribution of earnings, the information to be collected must include data on:

  • the enterprise or the local unit on which the employees depend, particularly on elements such as the form of economic and financial control and the type of collective agreement applied in the enterprise, etc.;
  • the employee (sex, age, occupation, level of education and training, length of service, full-time or part-time, type of employment contract;
  • gross earnings and hours of work.

Data collection and processing of results

The competent national authorities define the appropriate methods for collecting the information and ensure that employers comply with the obligation to supply the information within the fixed deadlines. However, surveys conducted in enterprises are optional if precise estimates can be produced from other appropriate sources.

The national authorities must process the replies in a coherent manner so that the results are comparable. The results are forwarded to Eurostat within a period of 18 months from the end of the reference year.

Context

Before the adoption of this Regulation, statistical information on earnings and labour costs was available only in certain Member States, which did not make reliable comparisons at European level possible.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 530/1999

1.4.1999

–

OJ L 63, 9.3.1999
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 1882/2003

20.11.2003

–

OJ L 284, 31.10.2003

Regulation (EC) No 1893/2006

19.1.2007

–

OJ L 393, 30.12.2006

Regulation (EC) No 596/2009

18.6.2009

–

OJ L 188, 18.7.2009

The successive amendments and corrections to Regulation (EC) No 530/1999 have been incorporated into the original text. This consolidated versionis of documentary value only.

Related Acts

Transmission of information

Commission Regulation (EC) No 1916/2000 of 8 September 2000 on implementing Council Regulation (EC) No 530/1999 concerning structural statistics on earnings and on labour costs as regards the definition and transmission of information on structure of earnings (Text with EEA relevance).

Commission Regulation (EC) No 1726/1999 of 27 July 1999 Implementing Council Regulation (EC) No 530/1999 concerning structural statistics on earnings and on labour costs as regards the definition and transmission of information on labour costs

Quality of statistics

Regulation (EC) No 698/2006 [Official Journal L 121 of 6.5.2006].

This Regulation concerns the quality evaluation of structural statistics on labour costs and earnings. It lays down the content and evaluation criteria of the report on quality control that the Member States have to send to Eurostat and the deadline by which this report must be sent.

Employment in Europe Report – 2006

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Employment in Europe Report – 2006

Outline of the Community (European Union) legislation about Employment in Europe Report – 2006

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

Employment in Europe Report – 2006

Document or Iniciative

Commission Report “Employment in Europe 2006” [Not published in the Official Journal].

Summary

Economic growth in the European Union (EU) slowed in 2005. This deceleration seems to be temporary as it is mainly explained by the surge in oil prices. Despite this reduction, there was a modest but gradual increase in the employment rate in the EU (63.3% in 2004 to 63.8% in 2005). Further but relatively low employment growth and a drop in unemployment are forecast for 2006-2007. Despite this progress, the target of achieving the Lisbon objectives by 2010 is becoming increasingly challenging.

Whilst generally positive, the labour market situation differs from one Member State to the next. This can be seen from the working arrangements with types of contract, working hours, working hour arrangements (such as night work or Sunday work) etc. varying considerably within the EU. The general reduction in working time is notable, although the average working hours per employed person remain high in the new Member States.

The results for women are encouraging, with employment growth being faster than for men. However, the employment gap between the two sexes remains considerable in the southern Member States. The employment rates for prime-age males (those aged 25-54) and older people (aged 55-64) are rising steadily, in contrast to the stagnating rate for young people (15-24). Most of the Member States are still faced with the same challenge: integrating their migrants into the labour market.

This report on employment illustrates the current trends in the European labour market. The main topics examined are:

  • combining flexibility and security on the labour market, i.e. “flexicurity”;
  • active labour market policies (ALMPs), aimed at achieving more employment-intensive growth;
  • the relationship between human capital, technological development and economic growth;
  • the geographic mobility of workers.

Flexibility of working arrangements and job security: “flexicurity”

The use of stringent methods to protect employment slows down the flow of labour between different jobs and reduces the dynamism of the labour market. This is why the Commission calls on the Member States to seek common principles combining flexibility and employment security in the labour market (i.e. “flexicurity”). This concept is the tool to classify different European labour markets.

Finding a good balance between flexibility and security requires the interaction of four elements:

  • the flexibility of contracts;
  • the dynamism and effectiveness of labour market policies;
  • the credibility of education and training systems;
  • modern social security systems.

The transition towards a flexicurity system can lead to an increase or shift in government expenditure. However, some methods do not necessarily involve major economic constraints. They may provide for:

  • setting up individual and portable “unemployment” accounts;
  • replacing all types of labour contracts by a single one,
  • lowering firing costs;
  • creating a layoff tax to fund unemployment benefit and public employment services (PES).

Fixed-term and open-ended contracts need to be adjusted at the same time to avoid labour market segmentation. Opting to ease employment protection legislation for temporary contracts only is not the right solution. This alternative leads to precarious employment, a lack of adequate training and negative repercussions in terms of the productivity of workers on “atypical” contracts”.

Effective active labour market policies throughout Europe

When unemployment benefits are relatively high, the intensity of the job search declines and spells of inactivity become longer. The coordination of unemployment benefits (passive policies), shifting workers towards productive activities and improving job prospects (active policies) can offset this drawback.

The availability of effective active labour market policies (ALMPs) which support

  • transitions between jobs as well as from unemployment to jobs is essential. However, expenditure on these measures accounts for only about one-third of total spending allocated to European labour market policies. Both the European Employment Strategy (EES) and the OECD Jobs Strategy therefore recommend two actions:
  • on the one hand, to shift from (passive) policies which aim to provide unemployment benefit to (active) policies which attempt to achieve more employment-intensive growth;
  • on the other hand, to take account of the interactions between active and passive policies in order to increase their effectiveness.

The effectiveness of ALMPs is currently evaluated using micro- or macroeconometric

  • techniques. Microeconometric techniques measure the impact of participation in a programme on employment and earning prospects. They consider that spending on a training programme is relatively ineffective and advocate investment in employment incentives
  • and public employment services (PES). Although widely used, it is preferable to make use of macroeconometric techniques, as the latter make it possible to measure indirect and long-term consequences, sometimes reaching conclusions which contradict the microeconometric evaluations. They consider that investment in a training programme has a significant positive impact. This paradox can be solved by extending the observation period to include the medium and long-term effects of setting up a training system.

Human capital, technology and growth in the Member States

The skill profile of the working age population is constantly improving, particularly among women. The EU is moving towards a knowledge-based economy, reflected in a more employable and adaptable workforce. This progress is leading to increased employment and participation rates, especially for high-skilled non-manual occupations. However, despite the increase in workers’ skills and the objectives of the Lisbon strategy, investment in a high-skilled workforce is disappointing.

The build-up of an individual’s knowledge, skills and competences (“stock of human capital”) is related to growth. The economic models linking human capital to economic growth follow two main approaches. The first considers that physical capital and labour alongside the level of training are factors of production and growth. The second considers that the stock of human capital determines the capacity of a country to create new technologies and to absorb those from other countries. The stock of human capital explains the difference in growth rates between countries. Within the EU, productivity is essentially determined by human capital and technology.

A study using data from 14 Member States evaluates the impact of high-skilled labour on technological progress. This evaluation differentiates between the impact on a country’s capacity to innovate and on its ability to catch up with the technology leader. The speed of the latter depends both on the proportion of high-skilled workers in the total workforce and its distance to the technology frontier. As a country nears the technology frontier its ability to create new technology increases. A skilled labour force raises the ability of EU Member States to develop new technologies and to absorb those developed abroad. The combination of a highly skilled workforce and a flexible working environment enhances a country’s innovation capacity.

Growth also depends on the adaptability of workers. This capacity to adapt to change is one of the main features of a well-educated workforce. It guarantees the effective reallocation of workers. An employee’s working environment is also a factor when it comes to adapting.

Labour mobility

Less than 2% of working age citizens live in another EU Member State. Mobility within the EU is significantly lower than regional mobility. This low rate of mobility can be explained by language and cultural barriers, the fear of losing social ties, administrative red tape and lack of information.

Internationally mobile (to a non-EU country) EU-15 citizens tend to work in high-skilled white-collar positions. The majority of them are young, single, without children and well educated. Citizens from the ten new Member States (EU-10) are even younger, the majority are women and most of them are medium-skilled. They are therefore less likely to be in highly skilled positions and are concentrated mainly in skilled blue collar and elementary occupations.

Studies show that cross-border mobility is likely to increase between the EU-15 Member States. The levels of mobility forecast for the EU-8 countries (EU-10 minus Cyprus and Malta) will not pose any major and lasting challenges for the labour markets of the host countries. In the long term, falling numbers in the younger age group (which tends to be the most mobile) is likely to act as a brake on mobility.

The free movement of workers is one of the fundamental freedoms of European citizens and contributes to the smooth operation of the internal market. Actions are needed to foster the integration and acceptance of newcomers. Policies on geographic mobility need to be coupled with those on employment, education and immigration..

Background

The 2005 employment report highlighted the importance of a comprehensive approach to reform in the face of rapid structural changes brought about by globalisation and population ageing. The 2006 issue corroborates this assertion and proposes different methods to help align the EES objectives with the renewed Lisbon Agenda.

Related Acts

Commission Report “  “. Recent developments and prospects [Not published in the Official Journal].

Commission Report “  “. Recent developments and prospects [Not published in the Official Journal].

Commission Report “Employment in Europe 2003”. Recent developments and prospects [Not published in the Official Journal].

Commission Report “Employment in Europe 2002”. Recent developments and prospects [Not published in the Official Journal].

Commission Report “Employment in Europe 2001”. Recent developments and prospects [Not published in the Official Journal].

Commission Report “Employment in Europe 2000”. Recent developments and prospects [Not published in the Official Journal].

Employment in Europe Report 2007

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Employment in Europe Report 2007

Outline of the Community (European Union) legislation about Employment in Europe Report 2007

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

Employment in Europe Report 2007

Document or Iniciative

Report from the European Commission Directorate-General for Employment, Social Affairs and Equal Opportunities – Employment in Europe 2007 [Not published in the Official Journal].

Summary

In 2006 the situation on the labour market improved throughout the European Union (EU). This trend was supported by the increase in economic growth which represented, on average, 3% of Gross Domestic Product (GDP) for the EU. Most jobs created concerned women, workers aged 25-54 and employees in paid employment (90%). Employment rates were particularly high in Member States that joined on 1 May 2004.

The growth in employment and labour productivity led to progress in achieving the Lisbon Agenda objectives. However, reforms should still be made, particularly in order to reach the targets of 70% employment and 50% of older workers on the labour market. The target of 60% for female employment has almost been reached.

The low rate of employment for young people gives cause for concern. The transition between the completion of education and the first job is generally difficult. Young people are also very often trapped in low-paid and temporary jobs. Lifelong education and training contribute to reducing poverty and social exclusion. It is also necessary to facilitate the recruitment of young workers by enterprises.

Employment of older workers: active ageing strategies

The employment rate for people aged 55-64 has increased by 7% since 2000. However, the jobs that have been created are often precarious and part-time. Moreover, the participation of older workers on the European labour market remains low with respect to the strategy for the demographic future of Europe, as well as compared to international standards.

The measures adopted to foster active ageing aim in particular at the quality of healthcare, lifelong training, the flexibility of work organisation and the improvement of financial aspects of employment.

Flexicurity models in Europe

The flexicurity regimes applied by some Member States are based on different models. They favour either “external” flexibility, which involves human resources policies adapted to market constraints, or ‘internal’ flexibility characterised by work organisation which is adapted to workers’ needs. Two models are associated with these forms of flexibility:

  • the “Anglo-Saxon” model based on external flexibility, job mobility and innovation. This model is also characterised by a high level of poverty and low public spending;
  • the “Nordic” model essentially practices internal flexibility. It displays good economic results, greater satisfaction and occupational health, a low level of poverty and high public spending.

Continuing vocational training in enterprises

The Commission highlights the fact that government intervention is necessary to strengthen fair access and the effectiveness of continuing vocational training. In this regard, several points should be taken into account:

  • the reduction of social exclusion and income inequality;
  • active ageing, the employment of young people with a low level of education and the viability of social protection systems;
  • flexicurity policies implemented through more dynamic labour markets and the transferable nature of workers’ skills;
  • the development of knowledge in moving from mass production to production driven by quality and innovation.

The labour income share

The part of added value allocated to labour reached a historically low level in 2006. This trend is in particular the result of technological progress and globalisation. It may have a negative impact on social equity, economic efficiency and macro-economic stability. It is for this reason that developments towards a knowledge-based economy should be accompanied by employment and flexicurity policies that are particularly aimed at less qualified workers.

European Statistical Governance Advisory Board

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European Statistical Governance Advisory Board

Outline of the Community (European Union) legislation about European Statistical Governance Advisory Board

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social and employment situation in europe

European Statistical Governance Advisory Board

Document or Iniciative

Decision No 235/2008/EC of the European Parliament and of the Council of 11 March 2008 establishing the European Statistical Governance Advisory Board.

Summary

The European Statistical Governance Advisory Board is an independent body established to oversee how the European Statistics Code of Practice is implemented in the European Statistical System.
The Advisory Board carries out its mission:

  • through an annual report for the Parliament and Council on the implementation of the Code of Practice by the Statistical Office of the European Communities (Eurostat);
  • through an assessment of the implementation of the Code in the European Statistical System as a whole, included in the annual report;
  • by advising on the implementation of the Code by Eurostat and the European Statistical System as a whole;
  • by advising on communicating the Code to users and data providers;
  • by advising on the updating of the Code.

The Advisory Board may advise the Commission to build user confidence in European statistics.

Composition

The Advisory Board is comprised of seven independent members who are experts in the field of statistics. The European Parliament and the Council each nominate three members after consulting the Commission.

After consulting the Commission, the Chairperson is selected by the Council and approved by the Parliament. The term of office for the chairperson is three years, renewable once. He or she cannot be a member of either a National Statistical Office or the Commission, nor have held such a post within the last two years.

If a member resigns before the expiry of his or her term of office, his or her replacement is nominated to serve a full term.

Eurostat is an observer member of the Advisory Board.

Operation

The Advisory Board is assisted by an independent secretariat which is provided by the Commission. A secretary is appointed by the Commission after consulting the Board.

The public can have access to the annual report on the implementation of the Code of Practice. Furthermore, all non-confidential documents can be made public after submission for response to the Parliament, the Council, the Commission and any other relevant body.

The expenses of the Board are included in the budgetary estimates of the Commission. A review of the role and effectiveness of the Board shall be conducted in 2010.

Context

The European Statistics Code of Practice was established in 2005 by the Statistical Programme Committee. It is presented in the Recommendation of the Commission of 25 May 2005 [COM(2005) 0217 final – Not published in the Official Journal]. The Code defines standards on the independence, integrity and accountability of the national and Community statistical authorities. It therefore contributes to the improvement of good governance, the quality of statistical data and user confidence in the authorities concerned.

A dialogue on the Code of Practice must be established between the Statistical Programme Committee, the European Statistical Advisory Committee and the relevant bodies in the Member States.

References


Act

Entry into force

Deadline for transposition in the Member States

Official Journal

Decision 235/2008/EC

16.3.2008

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OJ L 73 of 15.3.2008