1 employment in the european union: perspectives and threats labour markets, ageing labour force,...
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Employment in the European Union:Perspectives and threats
Labour markets, Ageing labour force, migration
International Conference
“Days of Socio-Economy: Education, Employment, Europe” Crakow, September 21, 2006
Constantinos FotakisDG Employment and Social Affairs
European Commission
The socioeconomic context
• Intense competition in the context of globalisationIntense competition in the context of globalisation• Fast technological changeFast technological change
• Rapid EU population ageing
• Poor EU performance in Employment
30.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
1945
1940
1935
1930
1925
1920
1915
1910
1905
1900
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
FemalesMales
Population (millions)Source: EUROSTAT
Age
Year of B
irth
3.0 0.51.01.52.02.53.5
2000
Age pyramid of the EU populationAge pyramid of the EU population
40.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
Population (millions)Source: EUROSTAT
Age
3.0 0.51.01.52.02.53.52030
2025
2020
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
1945
1940
1935
1930
Year of B
irth
FemalesMales
2030
Age pyramid of the EU populationAge pyramid of the EU population
5
Potential of employment growth at EU level
010
20
30
40
5060
70
80
90
100
Males15-29
Males30-49
Males50-64
Females50-64
Females30-49
Females15-29
EU25
3-Best
6
Demographic trends
• Fertility rates in the EU are far below population replacement level: 1.5
• Life expectancy is growing in most Member-States: +8 years on average since 1960
• Net migration is increased: around 1,5 million per year over the last 5 years
7
Employment rate per educational attainmentage group 25-64 in 2005
Employment rate per educational attainment, age group 25-64, 2005*
Low = ISCED 0-2 = Less thn Upper Secondary Medium = ISCED 3 = Upper secondary High = ISCED 5-7 = TertiarySource: Eurostat (Spring) LFS * 2005 except LU 2004
0
10
20
30
40
50
60
70
80
90
100
EU
25
EU
15
PT
SE
CY
DK
NL
LU IE ES FI
GR
FR SI
UK
DE
EE IT AT
LV
BE
LT
MT
CZ
HU
PL
SK
BG
RO
CC
3
CH
NO
Low Medium High
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Unemployment per educational attainmentage group 25-64, 2005
Unemployment rate per educational attainment, age group 25-64, 2005*Ranked per declining unemployment rate for Low educated
Low = ISCED 0-2 = Less thn Upper Secondary Medium = ISCED 3 = Upper secondary High = ISCED 5-7 = TertiarySource: Eurostat (Spring) LFS * 2005 except LU 2004
0
5
10
15
20
25
30
EU
25
EU
15
LU
NL IE CY
UK
DK
MT
PT IT
GR SI
SE
AT
ES FI
EE
FR
BE
HU
LV
LT
DE
CZ
PL
SK
BG
RO
CC
3
CH
NO
Low Medium High
9
EU15 - 1996-2005 USA - 1992-2002
Source: Eurostat LFS US BLS (Bureau of Labor Statistics)
* EU : Low = ISCED 0-2 = Less thn Upper Secondary; Medium = ISCED 3 = Upper secondary; High = ISCED 5-7 = Tertiary
US: "<HS"= "Less than High School", "HS-SCnd" = High School, some College (no degree)"; "<Bach" = "Less then Bachelor degree";
Coll-Grad = College Graduates
Annual growth of employment per educational level*
-2.5
2.8
3.8
1.2
-4
-3
-2
-1
0
1
2
3
4
2.23.2
1.4-0.6
0.0
-4
-3
-2
-1
0
1
2
3
4
10
Average annual growth of employment per educational level
Period 2000-2005 Age-group 15-64
-0.7
2.1
3.6
1.1
-4.3
0.0
5.0
0.4
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
Low Medium High Total
EU15 NMS
-0.7
2.1
3.6
1.1
-6.1
-1.0
8.7
0.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Low Medium High Total
EU15 PL
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• While, there are relatively large reserves of lower educated unemployed, there are few reserves of those at tertiary level.
• The valorisation of human resources - and particularly the young - becomes a strategic issue particularly as regards the policies related to education and the access to the labour market
• The employment strategy also takes account of the spectacular progress in female education and participation in the labour market. It pays due attention to this new reality by encouraging female employment, equal opportunities and the reconciliation between work and family life.
• The Member-States -particularly the new ones- can count on the support of the European Structural Funds over the next programming period.
The employment of the young
12
Annual rate of growth of population aged 65+ and 15-65,
EU25, period 2000-2040
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2000 2010 2020 2030 2040
65+
15-64
Source: Eurostat
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Promoting active ageing
• Improving quality in work
• Promoting Anti-discrimination policies
• Investing in training and life long learning
• Reforming tax and benefits schemes
• Rationalizing retirement schemes and pensions
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Migration: The role of the EU
• Economic Migration: Policy Plan on Legal Migration (2005)
• Integration of Immigrants: Framework for the Integration of third country nationals (2005)
• Illegal migration and return: Proposal for Directive (2005)
• Migration and development: Readmission agreements with the countries of origin
Some recent initiatives
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In conclusion
• Europe faces a double challenge: On the one hand, our population is ageing fast and on the other hand, Europe doesn't have enough people currently in work.
• Any growth strategy is conditional to a successful strategy of human resources development and employment growth.
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In conclusion
• If the EU is to reap the benefits of the global economy, it must be at the front end of ICT and innovation. To reach this level, we need the right skills, in the right place, at the right time.
• In the future, education in the EU will have to be better matched to the needs of the labour market. And if we are to make a real difference, we need to significantly raise the uptake of science and technology.
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Conclusion
• It is up to the Member States to make best use of Community policies and Funding possibilities in order to pave the way for more economic growth and more and better jobs.
• The Commission will have the important responsibility to provide strong support and keep national strategies, plans and programmes on the Lisbon track.