The European Commission’s Social Investment Package for Growth and Cohesion will be presented in the coming weeks.
A significant change to the unemployment levels is unlikely before 2014- David Casa
In light of this, the Commission has published the EU Employment and Social Situation Quarterly Review. This is an overview analysing in detail the developments in Europe’s labour markets and social situation last year.
Throughout 2012, European labour markets have been struggling to increase Europe’s employment rates, particularly in the eurozone area. Despite positive developments in relation to part-time jobs, the number of temporary and full-time jobs has continued to steadily decline across the EU. Countries such as Greece, Spain and Portugal have witnessed falls ranging from 5.5 per cent to 8.9 per cent.
Having said this, one cannot deny the fact that member states such as Malta and Estonia have witnessed a steady rise in the employment sector despite the economical crises Europe has been facing over the past five years.
Moreover, notwithstanding such economical challenges, Malta has been the envy of several member states as it has succeeded in safeguarding 5,000 workplaces while creating 20,000 jobs, resulting in a stable development within our labour market.
Nevertheless, unemployment figures remain high across the EU with over 10.7 per cent of the active population (26 million) unemployed in November 2012. In particular, youth unemployment continues to escalate. November 2012 saw youth unemployment peak at the worrying figure of 23.7 per cent. This is the result of a continued decline in temporary and part-time work for the youth of working age – 15-24 year olds.
Certain member states have seen a sharp increase in reports of financial distress, like, for example, Italy, Bulgaria, Spain and Portugal.
According to the European Quality of Life Survey, there has been a decrease in the quality of living across Europe in the past five years. Thus, the EU Employment and Social Situation Quarterly Review gives an analytical report of those member states across the board experiencing financial distress.
On a positive note, the review highlights one sector in particular in the EU’s economy that is a key enabler for employment growth: the health and social worker sector.
In recent years, this sector has emerged as a stabiliser during the economic crisis. It covers a wide variety of services, ranging from social assistance to long-term care for the elderly and people with disabilities. It is of particular help to women and older members of the labour market. It therefore plays an essential role for social cohesion and inclusion.
Despite growth in this sector, the economic outlook for the coming year will remain bleak as the levels of unemployment remain high. It is believed that a significant change to the unemployment levels is unlikely before 2014. This is suggested by the job vacancy rate and the labour shortage indicator, both of which are decreasing.
The European Commission released a forecast last autumn in which it indicates that unemployment levels will remain at around 10.75 per cent in the EU.
It has also forecasted a GDP growth for 2013 and 2014 of approximately 0.4 per cent and 1.6 per cent. It estimates the eurozone area’s GDP will grow by 0.1 per cent to 1.4 per cent during this time.
The IMF, the OECD and the ECB have also released forecasts that are in line with that of the Commission.
The Social Investment Package for Growth and Cohesion will be presented by the European Commission in the coming weeks. The package will consist of guidelines for member states on how to provide adequate levels of social protection while, at the same time, ensuring the social inclusion of all EU citizens.
David Casa is a Nationalist MEP.