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Joint Employment Report from the Commission and the Council

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Joint Employment Report from the Commission and the Council EUROPEAN COMMISSION Brussels, 18.11.2020 COM(2020) 744 final PROPOSAL FOR A JOINT EMPLOYMENT REPORT FROM THE COMMISSION AND THE COUNCIL EN EN TABLE OF CONTENTS FOREWORD ............................................................................................................................. 2 KEY MESSAGES ...................................................................................................................... 3 1. OVERVIEW OF LABOUR MARKET AND SOCIAL TRENDS AND CHALLENGES IN THE EUROPEAN UNION ................................................................................................. 21 1.1 Labour market trends ...................................................................................................... 21 1.2 Social trends ................................................................................................................... 28 2. SNAPSHOTS FROM THE SOCIAL SCOREBOARD ................................................... 31 2.1 The scoreboard explained ............................................................................................... 31 2.2 Evidence from the social scoreboard .............................................................................. 33 3. EMPLOYMENT AND SOCIAL REFORMS – MEMBER STATES PERFORMANCE AND ACTION ......................................................................................................................... 37 3.1 Guideline 5: Boosting the demand for labour ................................................................ 37 3.1.1 Key indicators .................................................................................................... 37 3.1.2 Measures taken by Member States ..................................................................... 50 3.2 Guideline 6: Enhancing labour supply and improving access to employment, skills and competences .......................................................................................................................... 56 3.2.1 Key indicators .................................................................................................... 56 3.2.2 Measures taken by Member States ..................................................................... 84 3.3 Guideline 7: Enhancing the functioning of labour markets and the effectiveness of social dialogue ...................................................................................................................... 98 3.3.1 Key indicators .................................................................................................... 98 3.3.2 Measures taken by Member States ................................................................... 121 3.4 Guideline 8: Promoting equal opportunities for all, fostering social inclusion and fighting poverty .................................................................................................................. 127 3.4.1 Key indicators .................................................................................................. 127 3.4.2 Measures taken by Member States ................................................................... 144 1 FOREWORD The Joint Employment Report by the European Commission and the Council is mandated by Article 148 of the Treaty on the Functioning of the European Union. The European Commission’s proposal for this report is part of the Autumn package. The Joint Employment Report provides an annual overview of key employment and social developments in the European Union as well as Member States’ reform actions, in line with the Guidelines for the Employment Policies of the Member States 1 . The report follows the structure of the Guidelines: boosting the demand for labour (Guideline 5), enhancing labour supply and improving access to employment, skills and competences (Guideline 6), enhancing the functioning of labour markets and the effectiveness of social dialogue (Guideline 7), and promoting equal opportunities for all, fostering social inclusion and fighting poverty (Guideline 8). In addition, the Joint Employment Report monitors Member States’ performance in relation to the Social Scoreboard set up in the context of the European Pillar of Social Rights. The Pillar was proclaimed jointly by the European Parliament, the Council and the Commission on 17 November 2017. It identifies principles and rights in three areas: i) equal opportunities and access to the labour market, ii) fair working conditions, and iii) social protection and inclusion. Monitoring of progress in these areas is underpinned by a detailed analysis of the Social Scoreboard accompanying the Pillar. The Joint Employment Report is structured as follows: an introductory chapter (Chapter 1) reports on main labour market and social trends in the European Union, to set the scene. Chapter 2 presents the main results from the analysis of the social scoreboard associated with the European Pillar of Social Rights. Chapter 3 provides a detailed cross-country description of key indicators (including from the social scoreboard), looking at Member States’ performance, challenges and policies implemented to address the Guidelines for Employment Policies. 1 The last update of the Employment Guidelines was adopted by the Council of the European Union in October 2020 (OJ L 344, 19.10.2020, p. 22–28). 2 KEY MESSAGES Before the COVID-19 crisis hit, the EU was experiencing a steady though decelerating employment growth. Continuing the positive performance in the labour markets that started in 2013, employment further expanded in 2019, reaching a record level at the end of the year. Reform efforts by Member States in the aftermath of the financial crisis contributed to this job-rich economic growth, though challenges persisted in some Member States and regions, including with regard to the labour market integration of vulnerable groups. The COVID-19 pandemic reversed this trend, suddenly changing our ways of working and living. It has taken a significant toll in terms of human lives and caused an unprecedented economic shock. The response by European and national authorities has been swift. Safeguarding citizens’ health and jobs has become the top policy priority. Member States have provided support notably to the groups and sectors that have been particularly affected. The implementation of these measures has, so far, avoided the emergence of a massive employment and social crisis across the EU. Yet, many uncertainties remain, notably about how long the pandemic will last, when a sustainable economic recovery will materialise, and the consequences for the most vulnerable. The situation differs across countries, also due to the legacy of the past. Member States that already experienced serious socio-economic challenges before the pandemic are now even more exposed to vulnerabilities. Implementing the European Pillar of Social Rights is key to ensuring that the recovery is fair and inclusive. The Pillar principles, along the three dimensions of equal opportunities and access to the labour market, fair working conditions and social protection, health and inclusion, need to guide the design of policy measures in support of workers and households. Fighting the impact of the pandemic, as well as preparing the recovery, requires fostering social resilience and upward convergence by putting people at the centre. The recently adopted Employment Guidelines integrate specific guidance aimed at mitigating the employment and social impact of COVID-19 and provide Member States with concrete guidance on how to modernise labour market institutions, education and training as well as social protection and health systems, with a view to making them more inclusive and fair. They also incorporate new elements reflecting the Union’s priorities, notably with regard to socially just green and digital transitions. Turning climate and environmental challenges into opportunities, and making the transition just and inclusive for all, is a key goal of the European Green Deal. The EU’s reaction to the crisis has been swift and strong. Member States have been offered unprecedented financial support to mitigate the economic, social and health impact of the crisis and enhance the recovery, including through the new SURE instrument, the Emergency Support Instrument and the increased flexibility in the use of the cohesion policy funds under the Coronavirus Response Investment Initiative. Furthermore, the Recovery and Resilience Facility – which is at the centrepiece of Next Generation EU – will provide large- scale financial support for reforms and investments aimed to support job creation and make the EU economies, societies and health systems more resilient and better prepared for the twin transition. This represents a unique opportunity to boost investment in people and accelerate the economic recovery. This swift response fits within a long-term strategy and contributes to the capacity of the Union to achieve its long-term objectives. 3 The Joint Employment Report aims at helping Member States identify priority areas for reforms and investment. Mandated by Article 148 of the Treaty on the Functioning of the European Union, the Joint Employment Report provides an overview of key employment and social developments in Europe and of the implementation of the Employment Guidelines. It has been an integral part of the European Semester from the onset, highlighting the key employment and social challenges to be tackled in the yearly cycle, as part of the Autumn Package. In the exceptional 2021 European Semester2, the
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