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Women and Men in the Crisis

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Women and Men in the Crisis Women and men in the crisis Research note 5/2013 Employment, Social Affairs & Inclusion Women and men in the crisis SOCIAL SITUATION OBSERVATORY INCOME DISTRIBUTION AND LIVING CONDITIONS APPLICA (BE), EUROPEAN CENTRE FOR THE EUROPEAN CENTRE FOR SOCIAL WELFARE POLICY AND RESEARCH (AT), ISER – UNIVERSITY OF ESSEX (UK) AND TÁRKI (HU) WOMEN AND MEN IN THE CRISIS Erhan Ozdemir, Fadila Sanoussi and Terry Ward Applica March 2014 This Research note was financed by and prepared for the use of the European Commission, Directorate- General for Employment, Social Affairs and Inclusion. It does not necessarily reflect the opinion or position of the European Commission, Directorate-General for Employment, Social Affairs and Inclusion. Neither the Commission nor any person acting on its behalf is responsible for the use that might be made of the information contained in this publication. January 2014 I 2 Employment, Social Affairs & Inclusion Women and men in the crisis Table of Contents Abstract ........................................................................................................... 4 Introduction ...................................................................................................... 5 Changes in employment of women and men during the crisis .................................. 6 Reductions in employment concentrated on the young while employment of those of 65 and over has risen ...................................................................................... 6 Reductions in employment have affected men more than women ......................... 7 The shift to part-time jobs ............................................................................... 8 Division of changes in employment between men and women by sector ..................15 The fall in employment has affected men with low education in particular … ..........22 …but has had less effect on women with low education .......................................24 Little change in the proportion of men and women employed in temporary jobs ....24 Over half of men and women moving from unemployment into work went into a temporary job in 2012 ....................................................................................28 Most men and women employed in temporary jobs do so involuntarily .................29 The proportion of men and women working part-time involuntarily has risen over the crisis period ..................................................................................................30 Division of employment between men and women sharing a household ...................32 The increase in part-time working in couple households ......................................34 Men’s and women’s income ................................................................................37 The risk of poverty of men and women .............................................................38 Employment of men and women living alone .....................................................41 Concluding points .............................................................................................43 January 2014 I 3 Employment, Social Affairs & Inclusion Women and men in the crisis Abstract The crisis has continued to have a differential effect on different sectors of economic activity and as a result, a continuing effect on the employment of men and women. Initially, therefore, the main effect of the recession in 2008 and 2009 was on manufacturing and construction, leading to large-scale job losses in many countries. Over more recent years, the response to the crisis of governments virtually throughout the EU has been to reduce employment in the public sector, the growth of which offset the decline elsewhere in the economy in the recession years. The concern here is to examine the extent to which employment has risen or fallen in the different broad sectors and how this has affected men and women. It is equally to examine the spread of part-time working which was a prominent feature too of the recession years, to see how far this has continued and how far it has affected men as well as women. The consequences of employment developments for the division of paid work between men and women within households are also considered, along with the implications for the contribution of the two to household income. It ends by examining the relative incomes of men and women in the light of labour market developments and, more specifically, the relative number of men and women with income below the at-risk-of- poverty threshold, focusing on those living alone, since the income of couple households is assumed to be shared equally between household members. January 2014 I 4 Employment, Social Affairs & Inclusion Women and men in the crisis Introduction The global recession which struck in the EU in 2008 had a clear differential effect on men and women in that by far the largest number of jobs that were lost were in construction and manufacturing industries where men accounted for most of employment and, in some cases, such as construction, almost all of employment. What is less clear is what has happened since and how the crisis –the period of virtual stagnation interspersed with renewed spells of economic downturn in many Member States or continuing recession in some (the southern EU15 countries especially) – which has followed has affected men and women in term of both their employment and incomes. This is the broad question examined below. As such, the concern is to update the analysis carried out in 2012 on the same question and to extend it to cover one or two additional issues of policy interest1. The analysis begins by examining the sectoral shifts in employment, focusing on the period up to mid-2013 (the latest date for which employment date are available at the time of writing) and how the changes which have occurred up to then have been divided between men and women. The concern here is not only with jobs as such and how they have expanded or contracted but also with the extent to which the new jobs created – or the existing one which have been lost –have been part-time rather than full-time, which clearly has implications for the income they have given rise to. The concern is also with the extent to which jobs are temporary, or fixed-term, rather than permanent or with open-ended contracts since this has implications for the stability of employment and the degree of uncertainty surrounding the future course of income which the jobs generate. The effect of their education level on how men and women have been affected over the crisis period and on the nature of the jobs that they have been able to find is examined at the same time. The second broad set of issues investigated concerns how the division of employment between men and women has changed during the crisis, focusing on men and women sharing a household. The interest here is in how far there has been a shift towards women moving into employment or working longer hours as men lost their jobs or, more generally, have not been able to not bring as much income into the household as before the crisis, whether because of not working or earning less money. The third set of issues relates to changes in the contribution to household income of men and women and how far, in particular, there is evidence of the contribution of women increasing over the crisis period, even if the data available cover only the initial years. The main focus throughout is on men and women aged 25-64 in order to focus on those of working-age but to exclude young people since they raise a different set of issues, though the change in employment of those aged 65-74 over the crisis period is examined since there has been a tendency for this to increase as a number of men and women have extended their working lives. So far as possible the latest set of data available at the time of writing is used in order to be as up-to-date as possible. The first part of the analysis is therefore based largely on quarterly data up to the second quarter of 2013. 1 See T. Ward and E. Ozdemir, Men and women in the crisis, Social Situation Observatory, Research Note No. 4, 2012 January 2014 I 5 Employment, Social Affairs & Inclusion Women and men in the crisis Changes in employment of women and men during the crisis Reductions in employment concentrated on the young while employment of those of 65 and over has risen Over the four years 2008-2012 (taking in each case the second quarter of the year), the total number employed in the EU28 declined by around 2.3%, most of the decline occurring in 2009 as a consequence of the deep recession which followed the global financial crisis which struck the Union in 2008. In the following year – or more precisely from the second quarter of 2012 to the second quarter of 2013 – the number declined by a further 0.3%2. Most of the decline in both periods is accounted for by young people under 25, who made up only 10% of the total in work in the EU28 in 2008, but whose numbers in employment fell by16.5% between 2008 and 2012 and by a further 3.5% in 2013, or by 4.4 million in absolute terms over the 5-year period as whole. This represents almost three-quarters of the job loss of 5.9 million over the period. (The share in 2013 was actually bigger than this, at around 85% of the total decline.) While some of the decline in the number of young people in work can be attributed to the fall in their numbers as a consequence of demographic trends (around a third if the employment rate of those aged 15-24 is applied to the decline in the number employed), most of it (i.e. around two-thirds) is a result of young people being squeezed out of the labour market by a shortage of job. Given the depressed state of the economy across much of the EU and the highly uncertain prospects for future growth, there has, therefore, been relatively little new job creation and many older workers retiring have not been replaced. As a result, the employment rate of those aged 15-24 fell from 37% to 32% between 2008 and 2013 in the EU28 and from just over 39% to under 32% in the EU15 countries excluding Germany (where the rate increased slightly).
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