The future of work in Europe: Job quality and work organisation for smart, sustainable and inclusive growth

Joint EC/OECD Seminar Brussels

28 November 2014

Caveat

The information and views set out in this presentation are those of the author and do not necessarily reflect the official opinion of the European Commission.

Outline

A multi-dimensional concept …

... affecting LM participation, motivation, performance,

Past developments

Drivers: Globalisation, technological progress, demographic change, etc. conditioned by LM institutions

New opportunities and challenges

Job Quality

• Multi-dimensional (EMCO)

o Socio-economic security o Adequate earnings

o Job/ career security

o Education and training

o Working conditions o Health & safety at work

o Work intesity and work autonomy

o Collective interest representation

o Work-life & gender balance

• JQ labour market participation,performance,…

Earnings & productivity

Earnings level (above market rate): Motivation: threat to lose wage higher than market wage

Commitment: reduced turnover costs, no loss of firm- specific human capital

Earnings dispersion: upward wage mobility: stronger effort to succeed, …

uncooperative behaviour

access to credit : human capital formation declines, ..

redistribution via income taxes: incentives

Am I well paid for the work I do?

6 Source: Eurofound, EWCS 2010

On-the-job training

7

0%

10%

20%

30%

40%

50%

60%

EL IT BG

RO PT ES LT FR MT

CY

HU PL

LV LU CZ

EE

EU27

BE

DE IE AT

NL

UK SI DK SE SK FI HR

Source: Eurofound, EWCS 2010

Job autonomy

Source: Eurofound

No access to childcare

Source: Eurostat

Job quality and labour market participation: multiple transmission channels

Note: standarized deviations from EU average

Future challenges Technological progress

• ICT and KETs innovations New job and career opportunities, higher productivity & earnings …

KETs: new health and safety risks at work, … ICT: work-life balance, …

• ICT and workplace innovation - more autonomy and responsibility for workers - stronger innovation capacity and productivity - better physical and mental health

- disables, older workers, family responsibilities

- polarization

Future challenges Globalisation

• FTA & FDI productivity (earnings, …), new job opportunities, …

social dumping, job insecurity, ploarisation, …

• Expanding global value chains - Higher Productivity (earnings, …)

- more international experience, new markets - multi-cultural environment

- global restructuring of value chains

- virtual collaboration across time-zones

- absence of multi-layered social dialogue

- polarisation

Future challenges Demographic change

• Ageing workforce Longer working lives, higher standard of living, …

- psychosocial and physical strain (loss of control, …)

- older workers’ employability (skill erosion, ...)

- poor career prospects

- age discrimination (stereotyping, …)

Thank you for your attention