Economic Outlook - Call for better childcare services
Despite childcare benefits for employment and growth, EU countries are not investing enough in childcare, according to a joint letter from European businesses, SMEs and trade union organisations. The letter, sent to the EU's Employment Commissioner...
Despite childcare benefits for employment and growth, EU countries are not investing enough in childcare, according to a joint letter from European businesses, SMEs and trade union organisations. The letter, sent to the EU's Employment Commissioner Vladimir Špidla on July 7 and signed by representatives from the business world (BusinessEurope), SMEs (UEAPME), trade unions (ETUC/CES) and public sector companies (CEEP), stressed the critical role of childcare in promoting women's participation in the labour market. It highlighted the need to adopt measures that make childcare accessible and affordable to all in order to encourage parents to re-enter and/or remain in the labour market.
A common vision for childcare services is currently lacking in Europe, largely because childcare markets in the EU27 are at different stages in their development. (A distinct feature of childcare services in Europe is their diversity. For example, a review of EU childcare services in 2002 found 136 formal types of childcare in the EU15, ranging from the lowest number of types in Greece (four) to the highest in the UK (14)).
At the EU level the problem started being addressed in 2002, when the member states agreed to provide accessible childcare to all by 2010. The targets to be reached include providing childcare for 33 per cent of children under three years of age and 90 per cent of children between three and the mandatory school age. Despite some significant improvements, the situation in trying to meet these targets remains inadequate, and without greater efforts the targets will not be achieved by 2010.
Improving the participation of women in the labour market and hence the overall employment participation rate is an important policy goal for the EU. A quantitative target of 60 per cent of women in employment by 2010 was set at the Lisbon summit in March 2000. Today, according to the latest Eurostat data, that figure stands at around 58 per cent. Greece (47.9 per cent), Italy (46.6 per cent) and Malta (36.9 per cent) share the lowest figures, with Scandinavian countries such as Denmark (73.2 per cent), Sweden (71.8 per cent) and Finland (68.5 per cent) scoring the highest. The data mirror investment in childcare services, with northern member states investing more than southern ones.
The need to increase the participation of women in the European labour market is important for various reasons. First many industrial countries, especially European ones, are concerned with the effects of low fertility on population age structure and, by extension, on the labour force and the viability of government pension systems. Today Europe's demographic situation is characterised by longevity and low fertility. This has led to the ageing of Europe's society and the eventual shrinking of domestic populations and workforces characterised by low fertility rates.
Increasing the proportion of women in the labour markets is not only a matter of economic growth; it also necessitates social reform. Increasing the number of childcare services to enable women to get back into the labour market after giving birth will bring various advantages.
First of all the overall workforce is increased, thus the member states' welfare can become more sustainable.
At the same time, by offering childcare services women will be more inclined to have children as they know that after giving birth they can still pursue their careers.
This will in turn help increase fertility rates in Europe, in the process stemming the ageing process in Europe's societies.
If Europe is to reverse this demographic decline, ensure an adequate work-life balance and enhance the participation of women in the economy, the EU member states must come together and implement a set of strong policies in order to address the need of better childcare for all. Some innovative projects, funded under the European Social Fund (ESF), are currently being undertaken throughout Europe.
These projects should now be implemented on a wider scale. The member states, together with the European Commission, should also monitor the progress in this area more rigidly, and encourage the exchange of good practices and innovative experiences in order to try and come up with practical solutions so as to increase the proportion of children in childcare services.
Mr Cuschieri is an executive at Impetus Europe Consulting Group Ltd.
Compiled by Impetus Europe Consulting Group Ltd, e-mail: info@impetuseurope.com, http://www.impetuseurope.com
A common vision for childcare services is currently lacking in Europe, largely because childcare markets in the EU27 are at different stages in their development. (A distinct feature of childcare services in Europe is their diversity. For example, a review of EU childcare services in 2002 found 136 formal types of childcare in the EU15, ranging from the lowest number of types in Greece (four) to the highest in the UK (14)).
At the EU level the problem started being addressed in 2002, when the member states agreed to provide accessible childcare to all by 2010. The targets to be reached include providing childcare for 33 per cent of children under three years of age and 90 per cent of children between three and the mandatory school age. Despite some significant improvements, the situation in trying to meet these targets remains inadequate, and without greater efforts the targets will not be achieved by 2010.
Improving the participation of women in the labour market and hence the overall employment participation rate is an important policy goal for the EU. A quantitative target of 60 per cent of women in employment by 2010 was set at the Lisbon summit in March 2000. Today, according to the latest Eurostat data, that figure stands at around 58 per cent. Greece (47.9 per cent), Italy (46.6 per cent) and Malta (36.9 per cent) share the lowest figures, with Scandinavian countries such as Denmark (73.2 per cent), Sweden (71.8 per cent) and Finland (68.5 per cent) scoring the highest. The data mirror investment in childcare services, with northern member states investing more than southern ones.
The need to increase the participation of women in the European labour market is important for various reasons. First many industrial countries, especially European ones, are concerned with the effects of low fertility on population age structure and, by extension, on the labour force and the viability of government pension systems. Today Europe's demographic situation is characterised by longevity and low fertility. This has led to the ageing of Europe's society and the eventual shrinking of domestic populations and workforces characterised by low fertility rates.
Increasing the proportion of women in the labour markets is not only a matter of economic growth; it also necessitates social reform. Increasing the number of childcare services to enable women to get back into the labour market after giving birth will bring various advantages.
First of all the overall workforce is increased, thus the member states' welfare can become more sustainable.
At the same time, by offering childcare services women will be more inclined to have children as they know that after giving birth they can still pursue their careers.
This will in turn help increase fertility rates in Europe, in the process stemming the ageing process in Europe's societies.
If Europe is to reverse this demographic decline, ensure an adequate work-life balance and enhance the participation of women in the economy, the EU member states must come together and implement a set of strong policies in order to address the need of better childcare for all. Some innovative projects, funded under the European Social Fund (ESF), are currently being undertaken throughout Europe.
These projects should now be implemented on a wider scale. The member states, together with the European Commission, should also monitor the progress in this area more rigidly, and encourage the exchange of good practices and innovative experiences in order to try and come up with practical solutions so as to increase the proportion of children in childcare services.
Mr Cuschieri is an executive at Impetus Europe Consulting Group Ltd.
Compiled by Impetus Europe Consulting Group Ltd, e-mail: info@impetuseurope.com, http://www.impetuseurope.com