workshop on the flexibility at the labour market flexicurity in eu ankara, 21 february 2011 anette...

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Workshop on the flexibility at the labour market Flexicurity in EU Ankara, 21 February 2011 Anette Björnsson DG EMPL – Employment Analysis European Commission

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  • Workshop on the flexibility at the labour marketFlexicurity in EU Ankara, 21 February 2011Anette BjrnssonDG EMPL Employment AnalysisEuropean Commission

  • *Overview of presentation Flexicurity in EUComponents of FlexicurityPrinciples of FlexicurityFlexicurity at the core of the EU policiesFlexicurity pathwaysFlexicurity and TurkeyFlexicurity in times of crisis in EU MS

  • *Flexicurity in the EUThe flexicurity is today one of the corner stones of the Europe 2020 being part of the guideline no. 7 and the flagship New skills and jobsThe principles and methods behind the flexicurity policy can be found in the Communication 2007/0359Flexicurity is a well developed model in some EU countries like Denmark, the Netherlands, and Sweden.

  • Components Flexible and reliable contractual arrangements (from the perspective of the employer and the employee, of ''insiders'' and ''outsiders'') through modernlabour laws, collective agreements and work organisation; Comprehensive lifelong learning (LLL) strategies to ensure the continual adaptability and employability of workers, particularly the most vulnerable; Effective active labour market policies (ALMP) that help people cope with rapid change, reduce unemployment spells and ease transitions to new jobs; Modern social security systems that provide adequate income support, encourage employment and facilitate labour market mobility. This includes broad coverage of social protection provisions (unemployment benefits, pensions and healthcare) that help people combine work with private and family responsibilities such as childcare.

  • PrinciplesInvolves flexible and reliable contractual arrangementsBalance between rights and responsibilitiesAdapted to the specific circumstancesReduce the divide between the insiders and outsiders Internal as well as external flexicurity should be promotedSupport gender equalityClimate of trust and dialogue between public authorities and social partnersContribute to sound and financially sustainable budgetary policies

  • Guideline 7 of the integrated guidelinesIncreasing labour market participation and reducing structural unemploymentintegrate the flexicurity principles with a view to increasing labour market participation combating segmentation and inactivity, gender inequality, whilst reducing structural unemployment

  • The components of guideline 7introduce a combination of flexible and reliable employment contracts, active labour market policies, effective lifelong learning, policies to promote labour mobility, andadequate social security systems to secure professional transitions accompanied by clear rights and responsibilities for the unemployed to actively seek work.

  • Undeclared work importanttackle labour market segmentation withmeasures addressing temporary and precarious employment, underemployment and undeclared work.

  • Flagship An agenda for new skillsand jobsThe four main priorities:

    New momentum for flexicurity Equipping people with the right skills for employment Improving the quality of work and working conditions Supporting job creation

  • Flagship An agenda for new skillsand jobsFlexicurity: 10 proposed priorities:

    Focusing on the reduction of segmentation in the labour market (EPL). Weight on internal flexibility in times of economic downturn (EPL) Improving access to lifelong learning (LLL) Adopting targeted approaches for the more vulnerable workers (LLL) Enhancing stakeholders' involvement and social dialogue (LLL) Establishing effective incentives and cost sharing arrangements (LLL) Adapting ALMP mix and their institutional setting to reduce LTU (ALMP) Reforming unemployment benefit systems to adjust to business cycle (SSS) Improving benefits coverage for those most at risk of unemployment (SSS) Reviewing the pension system (SSS)

  • The 4 pathways1: Tackling contractual segmentation2: Developing flexicurity within the entreprise and offering transition security3: Tackling skills and opportunity gaps among the workforce4: Improving opportunties for benifit recipients and informally employed workers

  • Pathway 1: Tackling contractual segmentationCharacteristics:Main problem is the segmentation of the labour market into insiders and outsidersThe new more flexible working contracts create a trap keeping the employees in short-term contractsProposed solutions:Need for more ALMPNeed for more resources at the PESMore focus on the people experiencing frequently unemployment spellsLLL for people working in short term contracts

  • Pathway 2: Developing flexicurity within the entreprise and offering transition securityCharacteristicsThe labour market is characterised by low job rotationThe economy is usually characterised by big companies which are creating higher job securityProposed solutions:Better opportunities for flexible arrangementsBetter cooperation between the stakeholders at the labour marketLLL important at company levelPES to focus on long-term unemployedMore conditions related to the payment of unemployment benefit

  • Pathway 3: Tackling skills and opportunity gaps among the workforceCharacteristics:high employment rateBut specific groups like women, younger, older workers are excluded from the labour marketProposed solutions:LLL very important in order to increase education levelPES role is to clarify the education level thereby focusing the ALMP on the most urgent needs (it should be more efficient to employ low-skilled)More focus on primary education.

  • Pathway 4: benefit recipients and informally employedCharacteristics:Countries that have experienced economical reformsMany people are receiving social benefits which can be characterised as labour market exit benefitsInvestment in ALMP is limitedGender specific differences existHigh informal sector

    What needs to be changed:New job opportunities for unemployedDecrease/stop informal work

    Tools suggested are ALMP focusing on education and lifelong learningBenefits that have an adequate size

  • Main conclusions from an ETF report on flexicurity in TurkeyTurkey is on the way to use the flexicurity principlesMain obstacles areThe large informal segment of the labour marketThe fact that many people (from the formal segment) are receiving social benefits, e.g the many people receiving benefits for early retirementThe very low participation rate for womenThe high share of low-skilled people in the workforce

  • Flexicurity in the times of crisis in EU MSMany Member States have temporarily introduced new publicly sponsored short-time working arrangements, or have increased their level, coverage and duration, and made their use more manageable (increased internal flexibility)strengthened unemployment insurance systems (i.e. the level of benefits, their duration, and their coverage for new groups).Active labour market measures have increased, including business start-up incentives, training and work experience programmes.Public Employment Services provided more targeted job-search assistance for particular groups such as young people, immigrants, workers on short-term contracts, the newly redundant, or those not receiving benefits.In some countries, employment services raised their staffing levels by 10% or more to cope with the rise in the number of job seekers.

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    Thank you for your attention