Transcript Defining, Measuring and Assessing Job Quality and its

Rapporto CNEL sul mercato del
lavoro, Roma 30 Settembre, 2014
Stefano Scarpetta
Direcotr for Employment, Labour and Social Affairs
The recovery is gaining momentum but
there is no time for complacency
• Unemployment has started to decline in the OECD, but further
progress is required as the job recovery has not gone very fast yet.
• People have borne considerable personal, economic and social
costs that may prove to be long-lasting:
– long-term unemployment remains persistently high,
– many employees have experienced economic hardship.
• Fixed term contracts are increasingly used for new hires, but
they are not an automatic stepping-stone to permanent work.
• Not just more jobs but also better jobs are needed. The good
news is that there is little sign of a trade-off between job quantity and
job quality across countries.
2
Unemployment has started to decline, but further
progress is required…
Unemployment rate
Percentage of the labour force
%
14
12
Current value (Q4 2013)
Start of the crisis (Q4 2007)
Country-specific peak
Projected value (Q4 2015)
10
8
6
4
2
0
Italy
Euro area
France
OECD
United
Kingdom
United States
Canada
Germany
Japan
3
… since the job recovery has not gone very fast yet.
Employment-to-population ratio
Percentage of the working-age population (aged 15 or more)
%
63
Current value (Q4 2013)
61
Start of the crisis (Q4 2007)
59
Country-specific trough
57
Projected value (Q4 2015)
55
53
51
49
47
45
43
41
Canada
United
Kingdom
Japan
Germany
United States
OECD
Euro area
France
Italy
4
People have borne considerable
personal, economic and social costs
• Among those who are unemployed, an
increasing number of persons are out of work
for 12 months or more, facing a depreciation of
their skills and a risk of labour market exclusion.
• Among those who have kept their jobs, many
workers and their families have experienced
economic hardship as a result of declines in the
spending power of their earnings from work.
5
Long-term unemployment remains persistently high.
Long-term unemployed (more than one year)
%
as a percentage of total unemployed
60
Q4 2013
Start of the crisis (Q4 2007)
50
40
30
20
10
0
Canada
United States
United
Kingdom
OECD
France
Japan
Germany
Euro area
Italy
6
Labour costs have grown at a much slower pace. This
has played an important role in helping the labour
market weather the crisis…
Unit labour cost growth
%
Average annualised growth rate
Real wage growth
%
6
3
4
2
2
1
0
0
Q1 2009-Q4 2013
-2
-4
Q4 2007-Q1 2009
-1
Average annualised growth rate
Q1 2009-Q4 2013
Q4 2007-Q1 2009
-2
7
… but the flip side is that many workers saw the real
value of their earnings fall.
Incidence of real wage cut in 2010
Percentage of full-time job stayers
(aged 15-64, staying at least one year with the same employer)
%
70
Nominal wage cut
Real wage cut
60
50
40
30
20
10
0
FIN
NLD DNK SVN AUS LUX
ITA
POL AUT FRA BEL
ALL DEU USA CZE GBR ESP GRC PRT EST
8
... since fixed term contracts are increasingly used
for new hires…
Fixed-term contracts among new hires
Percentage of employees with no more than three months of tenure
%
90
80
2011-12
2006-07
70
60
50
40
30
20
10
0
9
… albeit atypical jobs are not an automatic steppingstone to permanent work.
Three-year transition rates from temporary to permanent contracts
Share of temporary employees in 2008 that were employed as full-time
permanent employees in 2011
%
60
50
40
30
20
10
0
NLD GRC EST FRA ESP
IRL
ITA
AUT BEL POL
ALL
PRT SWE LUX CZE SVN GBR
FIN
HUN SVK NOR
ISL
10
Not just more jobs but also better jobs
are needed
Job quality embraces a range of aspects that
matter for well-being:
• Earnings quality: level and distribution of
earnings;
• Labour market security: risk and consequence
of job loss in terms of lost income;
• Quality of the working environment: extent to
which workers have the resources they need to
meet the demands of their jobs.
11
There is little sign of a trade-off between job
quantity and job quality across countries…
Earnings quality
Labour market security
High employment rate (in the top two deciles)
Quality of the working environment
Low employment rate (in the bottom two deciles)
Indices from 0 (low quality) to 1 (high quality)
1.0
0.8
0.6
0.4
0.2
NOR
CHE
DNK
NLD
FIN
SWE
IRL
BEL
AUS
LUX
NZL
GBR
DEU
CAN
AUT
USA
FRA
ITA
ISR
JPN
KOR
PRT
CZE
SVN
MEX
HUN
POL
EST
SVK
GRC
ESP
TUR
0.0
12
Thank you
Read more about our work
Website: www.oecd.org/employment/outlook
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