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International Conference
“Days of Socio-Economy: Education, Employment, Europe”
Crakow, September 21, 2006
Employment in the European Union:
Perspectives and threats
Labour markets, Ageing labour force, migration
Constantinos Fotakis
DG Employment and Social Affairs
European Commission
1
The socioeconomic context
• Intense competition in the context of globalisation
• Fast technological change
• Rapid EU population ageing
• Poor EU performance in Employment
Age pyramid of the EU population
100
1900
95
2000
90
1910
85
1915
80
1920
Females
Males
75
1925
70
1930
65
1935
60
1940
55
1945
50
1950
45
1955
40
1960
35
1965
30
1970
25
1975
20
1980
15
1985
10
1990
5
1995
0
2000
3.5
3.5
3.0
2.5
Source: EUROSTAT
2.0
1.5
1.0
0.5
0.0
0.5
1.0
Population (millions)
1.5
2.0
2.5
3.0
3
Year of Birth
Age
1905
Age pyramid of the EU population
100
1930
95
2030
90
1940
85
1945
80
1950
Females
Males
75
1955
70
1960
65
1965
60
1970
55
1975
50
1980
45
1985
40
1990
35
1995
30
2000
25
2005
20
2010
15
2015
10
2020
5
2025
0
2030
3.5
3.5
3.0
2.5
Source: EUROSTAT
2.0
1.5
1.0
0.5
0.0
0.5
1.0
Population (millions)
1.5
2.0
2.5
3.0
4
Year of Birth
Age
1935
Potential of employment growth at EU level
Males15-29
Females15-29
100
90
80
70
60
50
40
30
20
10
0
Females30-49
EU25
3-Best
Males30-49
Males50-64
Females50-64
5
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
6
Employment rate per educational attainment
age group 25-64 in 2005
Employment rate per educational attainment, age group 25-64, 2005*
100
90
80
70
60
50
40
30
20
10
Low
Low = ISCED 0-2 = Less thn Upper Secondary
Source: Eurostat (Spring) LFS
EE
IT
AT
LV
BE
LT
MT
CZ
HU
PL
SK
BG
RO
CC3
CH
NO
EU25
EU15
PT
SE
CY
DK
NL
LU
IE
ES
FI
GR
FR
SI
UK
DE
0
Medium
Medium = ISCED 3 = Upper secondary
* 2005 except LU 2004
High
High = ISCED 5-7 = Tertiary
7
Unemployment per educational attainment
age group 25-64, 2005
Unemployment rate per educational attainment, age group 25-64, 2005*
Ranked per declining unemployment rate for Low educated
30
25
20
15
10
5
Low
Low = ISCED 0-2 = Less thn Upper Secondary
Source: Eurostat (Spring) LFS
Medium
Medium = ISCED 3 = Upper secondary
* 2005 except LU 2004
High
High = ISCED 5-7 = Tertiary
NO
CH
CC3
RO
BG
SK
PL
CZ
DE
LT
LV
HU
BE
FR
EE
FI
ES
AT
SE
SI
GR
IT
PT
MT
DK
UK
CY
IE
NL
LU
EU15
EU25
0
8
9
Average annual growth of employment
per educational level
Period 2000-2005 Age-group 15-64
6.0
10.0
5.0
8.0
3.6
4.0
8.7
6.0
2.1
2.0
1.1
3.6
4.0
0.4
2.1
2.0
0.0
1.1
0.0
0.0
0.0
-0.7
-2.0
-2.0
-0.7
-1.0
-4.0
-4.0
-6.0
-4.3
-6.1
-8.0
-6.0
Low
Medium
EU15
High
NMS
Total
Low
Medium
EU15
High
Total
PL
10
The employment of the young
• 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.
11
Annual rate of growth of population
aged 65+ and 15-65,
EU25, period 2000-2040
2.0
1.5
1.0
65+
0.5
0.0
15-64
-0.5
-1.0
2000
Source: Eurostat
2010
2020
2030
2040
12
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
13
Net migration: Main countries of destination
14
Migration: The role of the EU
Some recent initiatives
• 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
15
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.
16
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.
17
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.
18
Thank you!
Web address:
http://europa.eu.int/comm/employment_social/index_en.html
19