SocialDialogue.net

Date: 26-12-2003 - Brussels

"The European Union risks failing in its ambitious goal, set at the Lisbon summit in 2000, of becoming by 2010 the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion", says Wim Kok, Chairman of the European Employment Taskforce. "The Lisbon objectives are ambitious, but Europe cannot afford to miss them. Member States must step up their efforts". The report of the Taskforce highlights that success in creating more employment will depend on four key requirements:

• increasing adaptability of workers and enterprises,
• attracting more people to the labour market,
• investing more and more effectively in human capital,
• ensuring effective implementation of reforms through better governance.

Today, Wim Kok, former Prime Minister of the Netherlands, submitted the Taskforce's report entitled Jobs, Jobs, Jobs to the European Commission. The 60-page report examines how to boost employment in Europe.

In the Brussels European Council of March 2003, European Heads of State and Government established the Employment Taskforce (see membership below) chaired by Mr Kok in response to concerns that Member States were failing to tackle effectively the significant employment challenges Europe faces. The Taskforce was invited to identify practical reform measures for Member States to implement the revised European Employment Strategy.

The report stresses that, despite improvements from the mid-1990s until 2002, Europe has a long way to go to achieve the ambitious objectives of the European Employment Strategy of full employment, quality and productivity at work, and inclusive labour markets. Moreover, with the economic slowdown, unemployment has increased, reaching high levels in a number of Member States. The new Member States also face significant challenges. They are called on to make proportionate efforts.

The report sets out priorities for action in all the Member States � both current and new. Building on existing good practice, it makes a number of practical recommendations for the EU as a whole.

The challenge for Europe is not just to respond to the current slowdown, but also to address the structural challenges of globalisation and economic integration, and the rapid ageing of its population. To sustain employment and economic growth in the longer term, the EU needs more workers, working more productively.

Member States, social partners, enterprises and workers must increase their capacity to anticipate, trigger and absorb change, if more jobs are to be created and filled. The creation of new businesses must be fostered and job creation maximised by reducing administrative and regulatory obstacles to the setting up and management of businesses, by providing better access to finance and support services. Member States should also pursue efforts to reduce the non-wage labour costs for low wage earners and ensure that overall wage developments do not exceed productivity growth. Increased investment in R&D and better dissemination of innovation are also vital to the expansion of business.

The report also makes it clear that labour markets must be made more flexible while providing appropriate levels of security for workers, so as to widen the range of choice for both individuals and employers, and avoid the emergence of a two-tier labour market. They are also advised to work towards the removal of obstacles to temporary work agencies; to promote, modern and more flexible work organisation and to remove obstacles to part-time work.

Making work pay is still a major challenge, especially for low-paid earners. Member States must seek to end unemployment, inactivity and low pay traps by adjusting the balance between taxes and benefits. In the current period of economic downturn when people are at risk of losing touch with the labour market, it is also crucially important to boost preventive and active labour market measures, such as effective job search, facilitating access to advice and training and work for unemployed and inactive people. This includes disadvantaged young people, for whom intensive coaching and effective pathways to work and training are required. The need to achieve better integration of immigrants deserves particular attention.

Specific action is also needed to remove the many obstacles that still hinder the participation of women. This calls for the provision of good quality childcare and eldercare which is affordable and widely accessible in terms of geographical coverage and opening hours, the removal of remaining tax disincentives, encouragement of attractive part-time work and addressing pay gaps.

To ensure that people remain in work longer, it is vital that Member States engage in building comprehensive active ageing strategies. The labour market situation for workers aged 50 and over is a major cause for concern, all the more so in the light of demographic ageing. Urgent action is needed not only to ensure that a higher share of those currently aged 55-64 stay in work, but also to keep a much larger share of those currently in their 40s and 50s in employment.

Building active ageing strategies requires a radical policy and culture shift, away from early retirement, towards three key lines for action: providing the right legal and financial incentives for workers to work longer and for employers to hire and keep older workers; increasing participation in training for all ages, especially for the low-skilled and for older workers; and improving working conditions and quality in work.

Europe needs to invest more and more effectively in its human resources. It is now time for action, not just good intentions, to build lifelong learning systems. Governments need to ensure that educational attainment levels are improved and, as a matter of priority, all stakeholders must be mobilised to make lifelong learning a reality. Such policies should include clear objectives for the whole population and cover effective measures to stimulate demand and supply of learning activities, and better anticipation of skills' needs. The vicious circle of low investment by business in training must be broken. This should be done by devising systems of cost sharing on a voluntary, compulsory or mixed basis, for example through sectoral and regional training funds.

The report also offers some proposals about how to implement reforms. Member States should reaffirm their commitment to the employment objectives they themselves have set together at European level. The report calls for the development of reform partnerships at national level and makes a strong plea for using the National Action Plans for Employment, called for under the EU Treaty, more strategically in the programming of the reforms. It insists on the need to translate European targets into national policies. To succeed, it is essential to mobilise the support and participation of the various stakeholders, and to secure public conviction in the need for reforms.

At EU level, the Taskforce stresses the need now to focus on implementing the commitments made in the European Employment Strategy. In an enlarged Union, closer monitoring and more forceful and precise recommendations seem required. The report also mentions the need to link the EU budget more closely to the implementation of the Lisbon objectives.

The report will be discussed in the Employment and Social Affairs Council on 1 December and be a key input for the European Social Summit to be held with the European social partners on 11 December. The European Council and the European Commission are invited to draw on it when preparing the European Spring Council.

Outline of the Report

The report covers all Member States - current and new - in the enlarged Union. Chapter 1 presents the main challenges and conditions for increasing employment in Europe. Chapter 2 proposes action to increase adaptability of workers and enterprises. Chapter 3 sets out reforms for attracting more people in the labour market. Chapter 4 includes key lines for action to raise levels of human capital. Chapter 5 focuses on issues of governance at national and EU level. Annex 1 summarises key country-specific message for each of the 25 Member States. Annex 2 provides some statistical information.

Membership

The Taskforce was composed of the following members:

• Wim Kok, former Prime Minister of the Netherlands
• Carlo Dell'Aringa, Professor at the Institute for Microeconomics and Labour at the University of Milano "Sacro Cuore"
• Federico Duran Lopez, labour market specialist and Professor of Employment and Social Security at the University of Cordoba
• Anna Ekstrom, President of the Swedish Confederation of Professional Associations (SACO)
• Maria Joao Rodrigues, President of the Social Sciences Advisory Group to the European Commission, Professor, Higher Institute for Business and Labour Studies, Lisbon University Institute
• Christopher Pissarides, Professor of Economics and Director of the research programme on Technology and Growth at the Centre for Economic Performance, London School of Economics
• Annette Roux, CEO, the Beneteau company
• Gunther Schmid, Director of Employment, Social Structure, and Welfare State at the Social Science Research Center in Berlin and Professor of Political Economy at the Free University of Berlin

The Secretariat of the Taskforce was held by the Directorate General for Employment and Social Affairs of the European Commission.

More Information

The report is available at (from noon on 26 November):
http://europa.eu.int/comm/employment_social/ employment_strategy/task_en.htm

The Secretariat of the Taskforce can be contacted at the following address: empl-task-force@cec.eu.int

Direct contact points:
Jos Kester: +31 65 10 58 349
Antonia Mochan: +32 498 969921
Luc Tholoniat: +32 497 64 71 82

Page top