D e c e m b e r 2 0 1 2 i s s u e12 Where is the job growth in the EU? ‘It is about education, education, education, and it’s not a short-term fi x’ Growing inequalities and feelings of social exclusion White knights? Job creation in health and social care Can becoming greener also create jobs? Hopes for job creation in ‘born global’ enterprises Is our right hand aware of what our left hand is doing? Job creation, job preservation or job loss? The future of Europe’s labour market IN THIS ISSUE issue 12 – December 2012 This issue of Foundation Focus looks at the state of play of the European labour market and what governments, social partners and companies are doing to overcome the crisis. Over the last few years, many jobs have been lost, and mass unemployment has become the reality in some Member States. Eurofound’s latest European Quality of Life Survey points to growing inequalities and social exclusion. At the same time, 3 Where is the job growth the EU remains committed to the idea of creating and maintaining high-quality jobs. in the EU? So where are these jobs going to come from? And is job quality being compromised in the attempt to cut costs and maintain competitiveness? All this and more in this issue of Foundation Focus. 5 ‘It is about education, Subscribe online at www.eurofound.europa.eu/publications/focusform.htm education, education, and it’s not a short-term fi x’ Editorial 7 Growing inequalities Jobs, jobs and more jobs – the focus of the current Irish EU Presidency and indeed of and feelings of social the EU as a whole as it faces the ongoing challenges of weak economic performance. exclusion Unemployment figures continue to rise, with five million fewer people working in mid-2012 compared to the same time in 2008 and youth unemployment untenably high. Recent findings from the European Quality of Life Survey reflect a growing inability to 9 White knights? make ends meet, accompanied by increasing feelings of social exclusion across the EU. The situation is critical, and it is right and proper that policymakers place jobs to the Job creation in health forefront of their efforts to guide the Union towards recovery. and social care So what are the real prospects for jobs? Eurofound’s European Jobs Monitor indicates employment growth in the top-paying jobs over the last year – largely focused in the knowledge-intensive service sectors such as ICT, business consultancy, health and 10 Can becoming greener education. Some growth was also evident in several low-paid jobs such as personal care also create jobs? workers in social work and residential care. The potential for job creation in this sector has been highlighted by Commissioner Andor and is confirmed by the initial findings of Eurofound’s project on jobs in the care sector. 12 Hopes for job creation The potential for green job growth has also been proclaimed, but Eurofound’s recent in ‘born global’ research suggests that implementing green business practices has redistributed jobs enterprises between sectors and not altered absolute employment figures. The ‘born globals’– young companies with an international mindset – may have the answer, with comparatively encouraging employment figures, but this has yet to be borne out in the longer term. 14 Wherever the answer lies, as Europe strives to move out of the shadows of this recession, Member States struggle it is clear that it cannot afford not to explore all possible avenues which may lead to jobs, against the jobs crisis jobs, jobs. 15 Is our right hand aware of what our left hand is doing? Foundation Focus is published by the European Foundation for the Improvement of Living and Working Conditions (Eurofound), Wyattville Road, Loughlinstown, Dublin 18, Ireland. 17 A simple picture Eurofound is an autonomous body of the European Union, established by Regulation (EEC) of a complex story 1365/75 of the EU Council of Ministers of 26 May 1975. Editor-in-chief: M ary McCaughey | Director: Juan Menéndez-Valdés Deputy Director: Erika Mezger 19 Further reading Original language: English Images: shutterstock / Eurofound / Axel Hartmann European Foundation for the Improvement of Living and Working Conditions Wyattville Road | Loughlinstown | Dublin 18 | Ireland Tel: (+353 1) 204 31 00 | Fax: (+353 1) 282 42 09 | 282 64 56 Email: information@eurofound.europa.eu | Web: www.eurofound.europa.eu 2 / Foundation Focus / issue 12 / December 2012 Where is the job growth in the EU? Over four years after the beginning of New jobs in well-paid Ongoing public sector retrenchment suggests the Great Recession, unemployment in occupations that this shift to private sector services as the the EU has been rising again for over engine of employment growth may continue. 12 months. Around three-quarters of a The EJM offers a convenient way of million fewer people were working in the There were over 400,000 new well-paid, top-representing aggregate employment shifts second quarter of 2012 compared to the quintile jobs created in private knowledge-at EU level and their implications for job second quarter of 2011, and five million intensive services in 2011–2012 in the EU. quality. What the chart below illustrates is fewer compared to the second quarter Among the jobs that employ large numbers, that both during the recession (2008–2010) of 2008. the two biggest employment gains were in and during the last year (from the second the high-skilled, high-paid category of ICT In a labour market comprising some quarter of 2011 to the second quarter of professional in computer programming and 220 million people in employment, this may 2012) as employment declines renewed, consultancy and in the high-skilled, mid- not seem unduly negative. It needs to be employment continued to grow in the top high-paid category of teaching professionals seen in context, however. Between 1998 and one-fifth (or quintile) of jobs in terms of pay – in education (see table on the next page). 2007, EU labour markets tended to add, on the best-paid jobs. average, around two million new jobs every While not growing as fast as during the Growth in low-paid jobs year. As well as lost growth, the crisis may pre-recession employment expansion, jobs have cost as many as 15 million jobs in the in the top 40% of the wage distribution have Some low-paid jobs have also increased EU so far, and the macroeconomic situation continued to add net employment. Jobs in employment – cleaners and personal care is not favourable towards job creation. All the other three quintiles suffered significant workers in social work and residential care this said, the European labour market is large employment losses. The new well-paid – and the lowest quintile has proven more and diverse, and there are distinct categories employment was primarily in knowledge- resilient than mid-low-paying and mid- of employment that are growing. And some intensive service sectors, such as ICT, paying jobs. The overall pattern is one of Member States continue to show relatively business consultancy, health and education. employment polarisation with some skew resilient labour market performance. What Employment growth in well-paid jobs was towards higher-paying jobs. This upgrading follows uses European Jobs Monitor data to concentrated in predominantly publicly skew has become more marked during 2011– identify pockets of recent employment growth. funded service sectors (principally health 2012; there are relatively more new good and education) during the peak period of jobs and a sharper decline in poor jobs. The European Jobs Monitor the recession (2008–2009) but has shifted recession in particular accentuated patterns Eurofound’s European Jobs Monitor to private sector services more recently. of job polarisation in terms of wages, as job (EJM) uses the ‘jobs approach’ to analyse employment shifts from a structural perspective, based on European Labour Force Employment change (% per year), EU, by wage quintile Survey (EU LFS) data. This is a simple but powerful approach that involves characterising a job as a given occupation in a given sector 2008 Q2–2012 Q2 2011 Q2–2012 Q22 2 using standardised international classifications (ISCO for occupation and NACE for sector) and then describing the employment shifts in each Member State as well as the EU as a whole. Ranking jobs – based on wages, education or a broader multidimensional index of job quality – adds a qualitative 0 0 dimension. The jobs approach was first pioneered in the 1990s in the US by Nobel laureate Joseph Stiglitz and refined thereafter by Erik Olin Wright and Rachel Dwyer. The particular question that this American work addressed – was job growth being achieved -2 -2 at the expense of job quality? – has become more nuanced over time. The jobs approach has in particular been used to assess the extent to which employment structures in developed economies are polarising, leading to a ‘shrinking’ or ‘disappearing’ middle, or -4 -4 upgrading in line with the predictions of ‘skill- Low Mid-low Mid Mid-high High Low Mid-low Mid Mid-high High biased technical change’. Source: Eurostat, EU LFS (author’s calculations) 3 destruction was concentrated in mid-paying pattern. Of the 0.75 million new part-time most recently acquired human capital, blue-collar jobs, especially in construction jobs created between the second quarter but even the best-trained young people and manufacturing. of 2011 and the second quarter of 2012, are finding it hard to gain a foothold in nearly as many were taken by men as the labour market. Youth guarantees Women faring better were taken by women, despite part-time and more extensive work placement and than men work being overwhelmingly female in apprenticeship opportunities can make the EU (around 80% of part-time jobs a contribution to addressing the problem Women have fared better than men are held by women). But whereas new of youth unemployment, as can fiscal recently, both in terms of quantity male part-time employment was strongly incentives to employers to hire younger and quality of employment. Female skewed towards lower-paid jobs with a workers. The most important panacea, employment has grown in the last year, concentration in construction and the however, will be a return to sustained while male employment has declined. hotel and accommodation sector in economic growth. Women also accounted for the majority particular, new female part-time jobs John Hurley of employment growth in the top wage were much more likely to be in the top quintile. In part, this has been because two wage quintiles. Over half of the gains women are overrepresented in certain were recorded in health and education, growing sectors, such as health, and traditionally well-paying sectors. underrepresented in declining sectors, such as manufacturing and construction. Few jobs for the young It also reflects relatively higher levels of What remains a major concern, of educational attainment by women in a course, is the weakening macroeconomic time when qualifications are becoming a situation and in particular its impact prerequisite for access to better-quality on the pace of job creation. Recessions jobs. One-third of female workers in tend to affect labour market entrants Europe have a third-level qualification, disproportionately. An alarming compared to just over one-quarter of male illustration is that over the last year workers. more of the net EU growth in well-paid, Finally, both self-employment and third-level graduate jobs was accounted part-time work in particular have grown for by those in the post-retirement age despite the stalled, jobless recovery. group (65+) than by workers under 30. Breaking down part-time employment The youngest age cohort has the highest growth by gender reveals an interesting average level of qualification and the Jobs with largest absolute employment gains, EU, 2011 Q2–2012 Q2 Employment Job ranking average Occupation Sector Millions Employment Non-wage employed gain Wage Education job quality 2012, EU27 (000s) Teaching professionals Education 9.8 109 74.3 92.0 85.5 Computer programming, ICT professionals consultancy and related 1.4 103 93.1 84.8 95.1 activities Services to buildings and Cleaners and helpers 2.2 95 1.1 3.3 10.9 landscape activities Social work activities Personal care workers 1.9 73 7.7 42.8 50.0 without accommodation Personal care workers Residential care activities 1.9 71 20.2 45.7 40.7 Crop and animal production, Agricultural, forestry and hunting and related service 1.5 68 21.7 1.1 8.4 fi shery labourers activities Food and beverage service Personal service workers 4.1 65 10.2 26.6 13.2 activities Note: Jobs employing large numbers only (> 1 million workers, EU27) Source: Eurostat, EU LFS (author’s calculations) 4 / Foundation Focus / issue 12 / December 2012 INTERVIEW WITH DONALD STORRIE ‘It is about education, education, education, and it’s not a short-term fix’ Eurofound’s Employment and Change European country spends on healthcare. In that jobs of sufficient quantity can be created unit researches developments in the the United States it’s almost double that of at the top end to compensate for the loss of European labour market, which spans some countries, which gives some indication the middle. topics including growth areas for job that the public sector is more efficient in Having said that, roughly speaking, there creation, youth unemployment and provision. are two classes of jobs that have been lost policies to combat unemployment. We But that’s just a sort of preamble, in a way, in the middle – those in manufacturing spoke to Head of Unit Donald Storrie to the point. There’s no getting round it, that and those in construction – and there are about changes in the labour market and it’s a serious problem. There are public sector actually quite different reasons why these prospects for employment growth. financing issues, and you either prioritise and jobs have been lost. To a large extent, the job The health sector has seen resilient cut back in other parts of the public sector loss in construction is very much a cyclical employment growth before and if you want to maintain current levels of phenomenon for the construction industry, even during the recession, and the spending on health, or you increase taxation. whereas the loss of jobs in manufacturing Commission has identified white jobs Unfortunately, it’s as simple as that. is primarily a structural change. So if and – caring jobs in health and social One of the research projects from your when the recovery comes, many of these services – as having a big potential unit, the European Jobs Monitor, construction jobs will come back. The size of for employment creation. Given that examines where jobs have been created the construction sector in many countries in most of these jobs are funded publicly, and lost. It found that during the 2006 to 2008 was overly inflated, there’s no how does that fit with the reality of recession the majority of jobs that were question of that, and hopefully we will not widespread public spending cuts? created, and there weren’t that many, get back to the same level of construction It’s quite clear that there is a potential for were high-paid, highly skilled jobs, jobs as we had before, but certainly some of growth in these sectors, not least due to whereas job loss has been concentrated them will recover, we will get back some of the fact there is a huge demand for these in the middle- and lower-paid jobs, those jobs. services. When countries get richer, an a lot of them in manufacturing and In terms of the manufacturing jobs that we’ve ever-increasing proportion of demand goes construction. What can policymakers lost, it’s very hard to imagine that those to these high-end services – healthcare, do to assist those in the so-called particular jobs will come back. You ask how education and so on. And then given that shrinking middle who have lost their we can get these people who have lost their these services are particularly demanded by jobs, given that the jobs they’ve been jobs in manufacturing to move on to high- older people, with the well-known ageing of doing are not going to be there in the end services. I think one has to accept that, our societies, this will be even more so, there future? at least in the short term, it’s not particularly will be huge demand for these services. One school of thought would always say realistic to expect that these shipyard workers These services can be satisfied either that the loss of these jobs in the middle is or textile workers would ever become doctors through the public sector or through private. unavoidable, and that we’ve got to move on or lawyers. It’s pretty obvious that that’s not However, it is pretty clear that, overall, the up the value chain and to continue to create going to happen, because there are huge most equitable and also actually the more jobs in even greater numbers at the top educational, not training, but educational efficient way of providing these services end of the wage distribution. It has always activities that have to be engaged in before is through the public sector. One of the been a promising and a vaguely realistic you can do that. So unfortunately one most striking ways this can be illustrated scenario that that would continue to happen. would guess that it won’t be these dismissed is by comparing the proportion of gross However, the extent of the job loss in the manufacturing workers who can move up to national product that the United States middle-paid category during the recession top-end jobs, but hopefully, possibly, their spends on healthcare and the proportion was just so striking that it’s probably not children. So it is about education, education, of gross national product that a typical realistic to believe, at least in the short term, education, and it’s not a short-term fix. 5 A bit more speculatively, and this is that the Swedes did things quite well. One some people might argue that what we have somewhat aligned to the recovery of the thing they did was that they cut back on to do to get back these jobs in the middle construction sector, while it is rather difficult active labour market policy measures, and is to lower wages in manufacturing in order to pin down green jobs, one could envisage they sent back literally millions of people to be able to compete better globally. That that if we do get a proper green infrastructural to the normal school system. It concretely really is quite a silly argument because the investment programme that many of these gave them what they lacked and what they extent of wage reduction that is required in jobs could be jobs in the middle. needed for a modern labour market, i.e. an order to compete with the Chinese is just EU institutions seem to be placing a upper secondary education qualification. inconceivable. It still must be that in the certain amount of faith in upskilling It also served, it is argued, to keep them in more developed countries, like in most parts and training, so some of the policy society; they felt they were doing something of Europe, you have to focus perhaps less instruments that they use, the Social meaningful. When subsequently the labour on the costs side of things and more on the Fund and also the Globalisation market did pick up towards the end of the productivity side of things. Fund, have significant budgets for nineties, unemployment fell dramatically Interview: Patrick Grabolle training and for upskilling, the idea because these people were still active, being that there are some people that available, not discouraged, and they you can retrain and that there will were able to push unemployment down be jobs for them eventually. Do we to under 4% by 2000. have any evidence that these training Some countries have weathered the programmes work, or are they just a recession better than others, countries holding stage to prevent people from like Germany for example, but if slipping into long-term unemployment, we look at how they did it and how with all the negative consequences that they have managed to reduce their has for individuals? unemployment level from above 10% Again, let’s distinguish between training or in the late nineties to nearly full upskilling courses – of typically three to six employment recently, a lot of these jobs months duration – and education, which is could be characterised as low-paid, a different thing. Typically, the effectiveness low-quality jobs, and their number is of active labour market policy in whichever growing. Is any job better than no job? guise it may take, whether it’s training or Or should we protect the standards other types of services, wage subsidies, that we have achieved and resist matching services, this whole battery of creating unsustainable jobs that create active labour market policies, that it is less working poor? efficient, it gives less positive results in times Some forthcoming work we’re doing is of recession because the main problem is looking at aspects of job quality based on about jobs. And I would suggest that there the Working Conditions Survey, and it would is potentially more return to more traditional appear that especially during recession the educational programmes in times like these type of jobs that have been lost are these than there is to the classic active labour jobs in the middle of the wage distribution, market policy measures. This is partly particularly but not only. They are jobs because during the boom, exemplified by that, according to the Working Conditions Spain for example, a lot of young people left Survey, are of low quality. So actually the school early in order to take up highly paid jobs that we have lost, not so much in terms jobs in the construction and tourist sectors. of wages but in terms of non-pecuniary And it is very often these young people who job quality, have been at the bottom end have lost their jobs. So if you’re looking at of the distribution. And if you look at the what policy measures these people need, the net creation of jobs in Germany during problem for these people is that very often the recession, there has been a significant they lack basic schooling, and one should increase in jobs at the top end of the wage perhaps think about reorienting policy distribution. And these ‘Hartz reform’ zero- measures to address the particular matter in hour contract jobs, as we call them generally, which they’re lacking. they exist, but in Germany it appears that You ask whether these training courses most of the net job creation during the are just a matter of keeping these people recession has been at the top end of the wage occupied, without necessarily leading to a distribution. job, and of course there’s great risk that that This thing about is any job better than no happens. So if there are not enough jobs to job, my understanding of that, and I think satisfy everybody, then these people have to perhaps many other people’s as well, would be integrated into society in some other way. be that it can be reasonable to accept a job Perhaps the most sensible thing to do with of reasonably lower pay for a certain time these people is to keep them occupied in in your life, when you’re young, before you education, in upgrading their general generic have a family and so on, but the risk is if skills. you accept that sort of thing that it becomes In relation to the banking crisis in permanent, then it does become problematic. Scandinavia in the nineties, many have said Given this huge decline of jobs in the middle, 6 / Foundation Focus / issue 12 / December 2012 Growing inequalities and feelings of social exclusion The economic crisis has sharpened that they would find another job with a of the EU. This becomes apparent in those inequalities in Europe, created mass similar salary if they lost their current job. countries negatively affected by the crisis, unemployment in the countries most However, the perceptions among different most dramatically in Greece, where only 20% affected and led to a worsening of age groups differ substantially in this respect. of people feel optimism about the future – a living conditions for many Europeans. Among 18–24-year-old workers, 31% think drop of 33 percentage points since 2007. If Europe is to get back on track, they would not find a job with a similar policymakers need to consider how to salary; the figure is 33% among 25–34-year- counteract these developments and find olds, 44% among those aged 35–49, and 60% Difficulties making ways to create growth for all sectors of among 50–64-year-olds. Older people also ends meet society. expect more often than younger groups that the financial situation of their households The proportion of people who claim they Eurofound’s European Quality of Life Survey will get worse in the next 12 months (38% have difficulties in making ends meet rose (EQLS) tracks life satisfaction, personal well- among 50–64-year-olds; 35% among people from 38% in 2007 to 45% in 2011–2012. being and perceptions of social and personal aged 65+). Among the 13% of workers who Households where at least one person is situations, resulting in a detailed picture fear that they will lose their job in the next unemployed and where none of the other of how Europeans view their lives and six months, 46% expect a worsening of their members is in employment are by far more their environment. Fieldwork for the third financial situation, compared to 24% of those likely to have difficulties making ends meet. wave of the survey was carried out in late who do not think they will lose their job. 2011 and early 2012, with 35,500 Europeans The chart below also compares rural and in all 27 Member States being interviewed. urban areas in two sets of countries: those The findings map the impact of crisis in With high unemployment and lack of with higher and lower mean GDP. It shows some areas but also show longer-term security come substantial declines in that in less affluent Member States (those trends and demonstrate the complex and optimism and happiness in some countries where average GDP per capita is below multidimensional nature of life satisfaction. Overall, the results indicate that those groups Some or great diffi culties in making ends meet (%) already vulnerable (such as the long-term unemployed, those unable to work, single EU27 mean 45% parents and older people in central and eastern Europe) have come under even more Rural, annual GDP/capita ≥ €20,000 39% pressure in the context of the economic Urban, annual GDP/capita ≥ €20,000 39% slump. The range and numbers of people at Rural, annual GDP/capita < €20,000 64% risk of social exclusion have also increased if Urban, annual GDP/capita < €20,000 58% one considers newly unemployed people or Top income quartile 21% households with mortgage difficulties. 3rd per capita income quartile 38% 2nd per capita income quartile 55% Job insecurity Bottom income quartile 71% Workers’ sense of job insecurity is heightened 2-person household, both retired 32% Single household, retired 39% in times of crisis. In the EQLS, 13% of workers state that they think they are likely Single household 46% to lose their job in the next six months. With Single-parent household 72% regard to the financial security of individuals, Household with at least 1 child 52% it may be important whether people can find Household ≥ 1 unemployed, another job with a similar salary if they lose 80%nobody at work their current job; 44% of workers in Europe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% say that it is ‘quite unlikely’ or ‘very unlikely’ Source: Eurofound, Third EQLS 7 €20,000), people in rural areas have more difficulties making ends meet (Belgium, participatory, various dimensions of difficulties making ends meet. In more Denmark, France, Latvia, Lithuania, Slovakia experience need to be taken into account. affluent countries, taken as a whole, level and Sweden). An increase was registered The EQLS does just that by providing an of urbanisation does not make a difference even in countries where GDP grew and index of perceived exclusion based on (although disparities can been seen in some income inequality decreased (Germany, how left out or unrecognised people feel. individual states). Hungary, Poland and Romania). It has to The average score of the exclusion index is be emphasised that GDP and GINI focus 2.17 in the EU, measured on a scale from Having difficulties making ends meet does not on income, while ability to make ends meet 1 to 5, where 5 refers to maximum exclusion. yet mean failing to do so. However, almost has a wider scope than income alone. It can It varies between countries and social groups, one in five (19%) Europeans report formal reflect, for instance, real living costs and but unemployment has the most devastating or informal arrears (mostly falling behind sources of informal support. impact: the long-term unemployed, who in paying utilities or in rent or mortgage score 2.76, and those unable to work (for payments). There are some households whose reasons including poor health or disability), inability to make ends meet is less evident, Social tensions who score 2.81, experience the most since they may cope by using informal loans It is perhaps not surprising that recent exclusion. Against this background, job from friends or relatives; 8% of people fail to economic and social problems are seen creation, schemes to avoid extended periods pay informal loans back on time. through the prism of social tensions. The of unemployment and pathways into work Per capita GDP in the EU as a whole, proportion of Europeans who report a lot of and participation are essential to avoid corrected for changes in price levels, tension between rich and poor went up from exacerbating social disparities. remained nearly unchanged between 30% in 2007 to 36% in 2011–2012. Tensions However, the data suggest that measures 2007 and 2011. Why then are more people between rich and poor are often paralleled to address social exclusion cannot be having difficulties in making ends meet? by the reported tension between managers exclusively directed at the labour market One explanation could be inequality – and workers, albeit at somewhat lower levels or even at improving income; people who there has been a global trend in increasing (32% in the EU as a whole). are involved in associations or in doing income inequality in recent years. Within voluntary work feel less excluded than those the EU, GDP grew in some states, but at the Perceived social exclusion who are not. Another factor is education same time, the GINI index – which tracks level: those with tertiary education feel least inequality – rose, and they experienced an If social progress is a process whereby excluded across most countries in Europe. increase in the proportion of people having societies become more inclusive and There is a need to increase opportunities for civic and political involvement. However, encouraging participation as a means of Perceived tensions between poor and rich people and between managers overcoming social exclusion remains a and workers (%) challenge for policymakers. While nearly 80% one in five Europeans (18%) would like to 70% spend more time on voluntary work, higher 60% levels of participation may depend not only 50% 40% on individual motivation but also on one’s 30% resources – including time, networks and 20% competences. 10% Assistance to and empowerment of excluded 0% ark nd ds ga l en ria ria ain nd lta rg kia UK aly ny um nd 27 via nia rus nia nia lic ce ce nia ary groups may require subtle forms, involving nm inl a rla n rtu edw us t lga Sp rela Ma bo u t a i a ova I rm elg Pol EU La t sto yp ve a pu b u I C o m Gre e an a g De F the Po S A B em Sl Ge B E r u n e x S l Ro Re F h Li th Hu nurturing of soft resources such as trust N Lu Cze c and human capital. It may require the development of certain framework conditions Poor and rich people Management and workers that would enable the creation of spaces for participation and networking for those Source: Eurofound, Third EQLS who are outside the labour market, and that would balance various work and care responsibilities to make the participation Perceived social exclusion index by employment status, scale of 1–5 possible and attractive. Tadas Leončikas, Hans Dubois Student 2.09 Retired 2.09 At work 2.10 On leave 2.11 Full-time homework 2.28 At work as an assisting relative 2.36 Unemployed < 12 months 2.42 Unemployed 12 months + 2.76 Unable to work 2.81 1.00 1.50 2.00 2.50 3.00 Source: Eurofound, Third EQLS 8 / Foundation Focus / issue 12 / December 2012 White knights? Job creation in health and social care Where are new jobs going to come in the care workforce, which is currently model can also be more beneficial to service from? The European Commission has mainly composed of women. The new pool users. In Spain, the cooperative Suara offers highlighted the potential of the health of potential recruits includes new graduates, services in rural areas, which are less well and social care sector when it comes to vulnerable groups, older workers, men, served by private service providers, which the creation of new jobs in Europe. foreign-born workers, part-time workers tend to be located in urban areas. According to Commissioner Andor, and other groups. An interesting initiative 4.2 million jobs in the EU were created in can be found in Austria, where the ‘training this sector from 2000 to 2009, more than a offensive’ (Qualifizierungsoffensive) Migrants Improving working conditions quarter of total job creation in that period. Care! targets migrant groups. Social care Today, the ‘white jobs’ sector – in other words, workers organise information events at local Low pay, long hours and bad working jobs in health and social services – accounts organisations for migrants, and distribute conditions can lead to a high turnover of for almost 10% of EU employment. This is information in six languages about how reflected in the Commission’s Annual Growth to become a social care worker. They also staff. Improving the existing situation of provide training and assistance in finding a employees is therefore important in order to Survey 2012, which recognises the health and retain carers and make the health and social social sector as one of the three sectors with job. Another programme, based in Denmark, uses job rotation, which temporarily replaces care sectors an attractive career choice. the highest employment potential in the EU care workers who are taking training leave Measures to achieve this include offering (together with green jobs and ICT). Member with unemployed people. continuous professional development States need to capitalise on this by prioritising training, professionalising services initiatives that further develop these sectors. and widening the career development Meeting labour opportunities of existing employees. The Barriers to recruitment market needs German programme Personalentwicklung in der Pflege professionalisieren (PEPP) In its Communication on the employment Stimulating and facilitating education is (Professionalisation of human resources package ‘Towards a job-rich recovery’, the another important element to increase development in the care sector) is a project Commission acknowledges that there are recruitment and retention. It includes financed by the European Social Fund that a number of challenges that need to be campaigns that promote a career in the care gives management training to caregivers, with overcome in order to exploit this potential. professions and improving the link between a view to reducing the stress associated with Some of the obstacles mentioned include the the content of education courses and labour management duties. need for new skills in the sector in order to market requirements. In the Netherlands, use new technologies (such as telecare and District Practical Training Companies There are also a number of initiatives in assisted-living technologies) or provide new (WijkLeerbedrijf) help health and social care Europe that seek to formalise the skills of treatments, the lack of adequate pay and students gain work experience in the area informal carers. In France, the Validation career progression, and demanding working they live in. Their work activity is related des Acquis de l’Expérience (Professional conditions. to their health and social care studies and Validation) allows carers to get formal comprises tasks that are not carried out by qualifications in different fields of experience; In 2012, Eurofound started a research the local authority. more than 11,000 people have so far received project analysing measures to recruit and national certifications for support workers retain people who provide community care Improving operational management and and nursing auxiliaries. services for people with disabilities or chronic labour productivity, by using new treatments health problems. The countries covered by or technologies for example, can help The preliminary findings of this project show this study are Austria, Bulgaria, Denmark, increase the productivity of workers. In that most countries use a combination of France, Germany, the Netherlands, Poland, Bulgaria, a pilot programme supports social these measures to retain and recruit workers. Portugal, Spain and the United Kingdom. enterprises by making grants available to In Member States where the quality of health Each of the national reports includes three them. This scheme funds projects carried and social care is already high, more focus is examples of measures that have proven out by social service providers whose aim it placed on attracting new labour reserves and successful in recruiting and retaining is to create jobs or provide training in social on increasing productivity. In countries with care workers and that can potentially be skills and trains them on how to achieve their a lower standard of health and social care transferred to other countries. goals. services, the emphasis is put on increasing Out of the many different measures used Social cooperatives are a type of social the quality and attractiveness of jobs. in recruitment and retention of staff, one economy organisation where workers can Daniel Molinuevo of the most widespread is targeting labour have a bigger commitment to the objectives reserves that are currently underrepresented of their company. In addition to that, this 9 Can becoming greener also create jobs? The need to incorporate greener can be made; however, our greening How to go further practices in all aspects of doing report identifies some tentative trends business is often seen as an additional that suggest a rather moderate impact. In order to move beyond just shifting jobs cost factor, but also as a source Within job quality dimensions, skills from one subsector to another or between of potential job growth. However, development seems to be the most sectors, more needs to be done. Based on recent Eurofound research shows affected by climate change. The study the analysis of 48 European companies that implementing green business confirms that greening results in very few leading green transition in their sectors, practices seems to have redistributed new occupational profiles and mostly the report argues that the implementation jobs between sectors and not altered stimulates improvement of existing of greening, through energy saving, absolute employment levels. skillsets across industries. In addition, manufacturing of green products, the it also reveals that skills development provision of green services or other green Available studies suggest that climate is likely to be positively associated business practices, could result in ‘triple change may contribute to an overall with other job quality dimensions – the win’ situations: benefits for companies employment increase of up to 1%–1.5% higher the level of skills associated in terms of higher competitiveness and (in net terms) by 2020, with largest profitability; benefits for employees in effects to be expected in construction, with an occupation, the better career terms of numbers of jobs and higher job textiles, logistics and trade, transport and and employment security, health and possibly the furniture sector. Relative well-being and work–life balance of this quality standards; and finally stronger economies with a healthier environment. loss of jobs (measured as the percentage occupation. difference from a baseline scenario) Moreover, at least in the short term, To be able to achieve this, a broad due to implementation of new climate greening is likely to increase the demand spectrum of regulatory, financial and change policies is likely to be largest in for highly skilled workers (and thus their non-financial measures is necessary. In gas supply, textiles, other manufacturing job quality) and decrease the demand regulatory policy measures, particular (part of which relates to furniture), energy (and thus job quality) for or have no attention should be paid not only to (affecting the whole sector), rubber impact on medium-skilled or low-skilled the drafting of legislation, but also to its and plastics, air transport, as well as workers. Among the 10 sectors analysed active and consistent enforcement. Social wood and paper (part of which relates as part of Eurofound’s research in partners expect clear tools, procedures to furniture). Meanwhile, the largest this area, the demand for green skills and a stable institutional, financial and relative gain in jobs due to new climate development is likely to be highest in legal framework to be formed in order change policies may be expected in the construction and energy, moderate for to reach climate change targets. Public construction sector. The recent economic the automotive, chemicals, distribution authorities could more actively introduce and financial crisis has not reduced the and trade, furniture and non-metallic environmental standards in green public number of green jobs, but it has slowed materials sectors, and low for the textiles, procurement policies. The EU could down the overall pace of greening across transport and shipbuilding sectors. Over follow the example of Scandinavian industries. Similarly, company case the medium-to-long-term period, when countries that are well advanced in this studies undertaken by Eurofound show technologies mature, demand (and thus regard. Environmental management that companies are finding it hard to job quality) for high-, medium- and low- standards (for example, ISO 14001) could balance climate change and the need to skilled workers may even out. The type be more intensively promoted for business cope with the crisis. of skills that are necessary to facilitate and especially for small and medium- this process are mostly generic, so-called sized enterprises (SMEs). Implications for job quality STEM (science, technology, engineering Meanwhile, financial measures need to be and mathematics) skills, as well as well balanced and targeted at those most When looking at what impact climate interdisciplinary skills and multiskilling. in need of support (for instance, SMEs or change might have on overall job The effects of greening on other job underrepresented groups of employees quality, no straightforward conclusions quality dimensions are less widespread. such as women in certain subsectors, 10 / Foundation Focus / issue 12 / December 2012 young people, blue-collar workers or older providing information and guidance in energy and resource efficiency, workers). Available public funds should services should be paid to facilitation undertaking audits, relevant legislation); be targeted not only towards technological of greening-driven organisational and performing a range of agreed green innovations, but also environmental behavioural innovations at company activities, ranging from energy audits to behaviour change at workplace level. and especially workplace levels. Thirdly, joint surveys with employers and union Support from the European Social Fund public authorities could support SME members to identify energy and resource could be more often programmed and networks that facilitate green change such hot spots where interventions are needed; used to anticipate and manage green as forums on sustainability, skills councils and amendments of current or the change, especially by social partners in or green-oriented sectoral training funds. conclusion of new collective agreements the newer EU Member States, which seem with targets on energy efficiency and to be less active in greening processes. Integrating employees benefits for employees associated Furthermore, to secure or even improve into the process with their achievement. All these give job quality, public authorities could employers a mandate to act, provide introduce horizontal job quality-related However, the key prerequisites for employees with a sense of ownership of requirements in their green public successful socially responsible green the green change processes and help to investments. change at company and industry formulate a strategic vision of greening in levels are not only regulations, the company. Accompanying large-scale non-financial financial support and building-up of Radosław Owczarzak measures should be initiated to promote internal company know-how, but also greening across industries. Firstly, public general awareness and acceptance authorities could devote significant of change among employees. Thus resources to raising public awareness organisational innovations aimed at of green change and particularly the clear communication and interactive importance of green skills and overall involvement of employees are needed. green culture within the green change This could be done through various processes. Secondly, additional guidance organisational eco-innovations including: services for companies (especially involvement of employees’ representatives SMEs) by, for example, providing (or workplace union representatives) in information on relevant support schemes, green management structures; providing forecasts of greening trends or tools adequate time resources for training on on how to implement green change environmental issues at work, including could increase the share of greening teaching of both specific and especially companies. Particular attention in generic green skills (for example, 11 Hopes for job creation in ‘born global’ enterprises Born globals are companies that one-person operations and about 12% Knock-on effects engage in intensive international employ 10 or more workers, there are activities within the first few years fewer born globals without employees The employment effects of born globals of start-up, targeting multiple foreign (29%) and more employing 10 or more do not only materialise in the firms markets and achieving high export staff (22%). On average, born globals themselves, but also in companies levels. They are driven by the global linked to them. Due to their small size employ one worker more than young mindset of the entrepreneur and and specialisation, born globals often firms in general, and there is some the need to attract international concentrate on individual elements of indication that jobs in born globals business, as their domestic markets the production process (mainly product are characterised by higher autonomy, are too small for the specific products development and sales), while others flexibility and income levels. or services they offer. (often production) are outsourced to other Born globals also possess higher growth companies. Hence, if born globals perform Because they are young, born globals potential compared with domestically well and engage with subcontractors tend to be micro or small enterprises oriented start-ups, as more staff are along the supply chain, employment in their growth phase. They can be needed to engage in business in multiple levels in those other companies will also found in all economic sectors and offer increase. products or services characterised by a markets. Furthermore, because of the high level of innovation, technology or innovative character of born globals, However, being a born global does not exclusive design. Indeed, the share of which makes them compete through automatically imply economic and born globals showing innovation is about producing value-added, they depend employment development. While born 5–10 percentage points higher than on skilled labour, which is preferably globals are found to be more profitable among young enterprises in general. recruited into the company, retained and and financially healthy than young increased to maintain competitiveness. enterprises in general, about one-third Born globals are often involved in international business networks, and these well-functioning cross-border relationships are an important element of Born globals as share of young enterprises and all enterprises, their success. selected EU Member States, US and Japan, 2008 (%) 2.50 Contributing to average employment 2.00 Across Europe, around 20% of young enterprises (in business for up to 1.50 3.5 years) can be considered to be born globals. However, considerable average 1.00 differences exist among countries: the proportions vary from less than 10% in Hungary to about 40%–50% in Belgium, 0.50 Denmark and Romania. In spite of being small in size, born 0.00 globals are assumed to have stronger 0 5 10 15 20 25 30 35 40 45 50 potential to create employment than Born globals as % of young enterprises other young enterprises. For example, while 36% of all young enterprises are Source: Global Entrepreneurship Monitor (author’s calculations and presentation) 12 / Foundation Focus / issue 12 / December 2012 Born globals as % of all enterprises Number of employees in born global and young fi rms, selected EU Member States, US and Japan, 2008 (%) 80 70 60 50 40 30 20 10 0 0 1–9 10–49 50–249 250+ Born global start-ups Start-ups Young born globals Young enterprises Note: A start-up is newly formed, without an established revenue stream; a young company is actively engaged in business and in operation for up to 3.5 years. Source: Global Entrepreneurship Monitor (author’s calculations and presentation) are deemed vulnerable because of the • fostering a culture of many challenges they have to master in internationalisation at national level a short timeframe as regards financial, and promoting regional and sectoral management and product development centres of expertise abroad to allow capacity. As the growth, or even survival, born globals to benefit from the of born globals is not a given, external reputation and experience of other support can help to ensure that their full companies. potential can be realised. Irene Mandl Supporting born globals Across Europe, a broad range of start- up, internationalisation and innovation support is available to born globals, even if not explicitly targeted at them. However, some of the existing instruments disqualify them from participation due to the inherent eligibility criteria, such as the requirement to have an established home market before receiving internationalisation support. Apart from reviewing the criteria to make such instruments accessible for born globals, the following issues in particular could be better addressed to benefit the economic and job creation potential of these business start-ups: • establishment of internationally oriented business incubators to provide premises and comprehensive services, such as training and networking opportunities, peer exchange of ideas and business models, as well as contacts with potential investors; • improving access to finance by fostering the venture capital market through awareness-raising measures, investor incentives and support for born globals in presenting their business on the capital market; 13 Member States struggle against the jobs crisis Against a background of economic crisis Lithuania, Malta, Slovakia and Sweden, on unemployment benefits. Tougher and reduced employment, the European temporary employment grew alongside restrictions will apply to young workers Commission in its 2012 work programme overall employment growth. But the opposite between full-time education and work, who recognised job creation as one of the was the case in the Czech Republic, will be unable to claim benefit for up to one most important challenges for Europe. Hungary, Latvia, Norway and Poland, where year (rather than nine months) after losing The Commission suggested that the temporary employment decreased while total a job or leaving education. Unemployed response of EU countries in improving employment increased, appearing to indicate workers will now have to accept job offers opportunities for young people at work employer optimism. In Bulgaria, Greece from the state employment agency at and those entering the labour market is and Portugal, a decrease in temporary distances of up to 60 kilometres from home critical. The Commission also addressed employment probably reflects both the or risk losing benefits. Employers, however, other crucial areas affecting job creation economic situation of these countries will receive tax benefits for the first three new such as the careful management of and employer pessimism. Among the EU employees they hire. A Belgian devolution restructuring and flexicurity. countries, only Germany and Estonia have initiative will introduce vouchers for domestic shown significant employment growth, while services, industrial apprenticeships and tax However, the context of austerity measures the remainder showed slight increases or relief for measures directed towards at-risk around Europe has rather dictated the shape decreases. Greece, however, lost a startling groups, a programme that is expected to raise of such responses. Increasing unemployment 6.8% of jobs as a result of its austerity employment by 5%. rates and reductions in employment – measures. combined with little or no growth – have A different approach follows the election of limited any responses that might have Job creation remains on the agenda. In the a new government in France, where older stimulated growth in job numbers. So chemical industry, a framework agreement, and younger workers may benefit from a initiatives to prevent loss of existing jobs the first of its kind, may pave the way ‘generation contract’. This is designed to through restructuring have taken precedence. for sustainable job creation during the create jobs for young labour market entrants Additionally, the slight growth in job numbers economic crisis. In an initiative that aims by retaining the skills of older workers. has in many cases been driven by increases to substantially increase numbers of skilled Grants to employers will seek to increase the in part-time work – a restructuring measure employees, all chemical industry employees employment rate of workers over 57 years that effectively decreased full-time work. It across the 27 EU Member States will benefit old, and these older workers will, in turn, may have brought about the weak increase from upskilling and the standardisation of in jobs over 2010–2011 compared to a weak qualifications and competences across the decrease in the previous annual period. But sector. Increased vocational training is also given the ubiquity of austerity measures, it is laying a foundation for future job creation hard to perceive any sustainable employment in Austria, Bulgaria, the Czech Republic, gains. Unfortunately, job increases are Luxembourg, Sweden and the UK. In the sometimes accompanied by a deterioration UK, the electricity sector is showing signs of in working conditions. In the retail sector, job creation after a downturn. for instance, initiatives by the social partners In Austria, an alternative perspective on have tried to alleviate difficulties, but the increasing employment has led to demands industry continues to be vulnerable to the for pay among senior management to be downsides of temporary work and contracts, capped and tied to sustainable measures unhealthy work practices and poor wages. such as job creation. The Chamber of Labour has suggested that managers’ pay is Employers pessimistic excessive; the top-earning managers are paid 48 times the average worker’s wage, a figure Where growth in temporary jobs occurs, which has doubled over two years. it appears to reflect employers’ concerns about uncertainty. This is especially true To give or withhold? of Belgium and Italy, where temporary job growth has been greater than total A new government in Belgium is attempting employment growth. In Estonia, Finland, to increase jobs by placing more restrictions 14 / Foundation Focus / issue 12 / December 2012 train younger workers. The proposal offers a complex initiative that has received broad support from both trade unions and employers. France has also introduced a Jobs for the Future Bill that plans to create 150,000 jobs by 2014. Austerity dampens demand Is our right hand Portugal’s plans to reduce employers’ social security contributions (and raise those aware of what our of employees) were thwarted by massive demonstrations and the threat of a general left hand is doing? strike. It had been thought that the changes would promote job creation by encouraging ‘Jobs, jobs and jobs’. There is no in 2007 developed a framework to employers to take on more staff. But doubt that jobs are the priority of understand better the links between unexpected support for the opposition came the moment; in the last few years, employment conditions and social from the employers, who felt that these many jobs have been wiped out and determinants. Member States individually measures would affect purchasing power and unemployment has increased. This have also in some cases developed reduce domestic demand for their goods and has affected certain groups in society frameworks and programmes of action to services. more than others; some workers have measure and encourage good work and The turn to temporary working reveals deep- become discouraged and are now employment. seated employer pessimism, but employers inactive. Three elements are common to all these do recognise that most job creation A question arises, though: is any job better frameworks. opportunities lie upstream of employment, than no job at all? • Job quality is not job satisfaction. in the education sector. The bipartite French Eurofound’s recent work on developing approach has broad support from employers • Job quality is embedded in a job-quality indices1 shows that 20% of and unions because it brings new entrants to multilevel system in which workers, jobs in 2010 had characteristics likely to the labour market and avoids a gap in skills. companies and labour markets, impact negatively on the health and well- The restrictive approach of Belgium largely at country and supra-national being of the job-holders. At best, holding depends on job availability and worker level, interact through a variety of such a job might result in a limitation mobility, which in turn relies on transport instruments (rights and regulations, of people’s capacity to engage in paid accessibility and flexible accommodation financial incentives, human resources activity. prospects. And the message from Portugal is policies, work organisation practices clear: draconian austerity measures reduce Such a finding puts at risk the and behaviours) to ultimately domestic demand for goods and services. The commitment endorsed by all Member determine job quality. knock-on effect renders enterprises even less States to full employment by 2020, in a • Job quality is multidimensional and able to create jobs. context where workers are ageing and cannot be limited to one dimension. are being asked to work longer in their This article is based on recent articles and jobs. Meeting this objective will require Building on this work, Eurofound decided reports published on Eurofound’s European strong and coordinated policy answers; to put a number on job quality by Industrial Relations Observatory (EIRO) and sustainable and inclusive quality of work building indices to measure the quality European Working Conditions Observatory and employment could be one of the of jobs using indicators from the fifth (EWCO). instruments to ensure that we are heading European Working Conditions Survey. A Camilla Galli da Bino in the right direction. number of principles guided the decisions in developing the indices. What is job quality? Choosing the criteria Despite having been on the European agenda for many years, no unique The first decision was to set the criteria definition of job quality has emerged, for selecting the characteristics of work although a variety of frameworks have that matter. A number of criteria were been developed – for example by considered, such as well-being of workers, Eurofound in 2002 – and put into practice company performance, characteristics of in some cases in recent years. The the European social model and gender European Commission started to monitor equality. For reasons linked to the quality the Laeken indicators in 2001 to measure and strength of the scientific evidence the political process of employment available in part, the criterion of well- strategy; the ILO, focusing more on labour being was selected. All characteristics of rights, social protection and social justice, work and employment, whether positive developed the concept of ‘decent work’; or negative, that have been proven to and the World Health Organization have a causal relationship with well- being and health of the workers were considered for inclusion in the indices. 1 Eurofound (2012), Trends in job quality, Most of these indicators also have an Publications Office of the European Union, impact on absence from work as well Luxembourg. 15 as presenteeism (presence at work Political attention at the level of the jobs and poor-quality jobs. Poor-quality while sick) and contribute ultimately, job is legitimate as little information is jobs were those that had low levels on although indirectly, to the performance of available on that level and therefore new all indices, and these accounted for companies. information adds to our knowledge. 20% of European jobs. Workers in these The result of this exercise was the poor-quality jobs had, on average, the A second decision had to be made on the number of indices to develop, based on development of four indices, one of lowest levels of health and well-being, which can be broken down into four showed more health problems, had lower two principles: a principle of economy of indices to ease understanding, but more dimensions. They cover earnings, subjective well-being, and found less job prospects, working time quality and meaning in their work. People who hold also a principle of identification of issues these jobs are likely to have their health requiring policy attention. Indeed, as intrinsic job quality; the latter can be capacity reduced through exposure to a the understanding of what job quality is further divided into skills and autonomy, high number of risks in the achievement varies, it is important to clearly identify safe physical environment, trusting and of their work. the dimensions of job quality that are secure social environment, and high level being considered and that might require of work demands (work intensity). One out of five: is that a level acceptable to us? Will this enable Europe to meet policy attention. Added to that was the One in five jobs its objective of full employment? Can we concern to avoid risk obfuscation and afford to create jobs and not monitor their provide figures that ultimately would of poor quality quality? average out situations. As all indicators were developed from Agnès Parent-Thirion A third decision had to be made on the the fifth European Working Conditions level in the system to be measured. The Survey, it was possible through cluster level of the job was selected for this analysis to assess to what extent certain exercise. Characteristics of the job but values of these indices cluster together. not the fit of the job with the individual It was found that jobs could be classified job-holders, in a given labour market and in four categories: high-paid good jobs, national environment were measured. well-balanced good jobs, poorly balanced Eurofound’s four indices of job quality Index Brief description of content Earnings Hourly earnings Job prospects Job security, career progression and contract quality Duration, scheduling, discretion and short-term fl exibility Working time quality over working time Skill use and discretion Intrinsic job quality • skills and autonomy Good social environment • social support and absence of abuse Good physical environment • low level of physical and posture-related hazards Work intensity • pace of work, work pressures and emotional or value confl ict demands Individuals with low-quality jobs, EU Member States (%) 35 30 30 31 32 30 27 23 24 24 25 26 26 25 20 21 22 20 16 17 18 18 18 15 10 10 10 12 12 14 10 7 9 5 0 rk rg la u nds nd UK en um anya d i tria nc e and tal y l s l I aki a eni a ltaa bli c lan d pai n uga oni a tvia ari a ary ani a s pru ani a e nm bo a c e m erl Fin Sw e elg erm Au Fr a B Po Slo v Slo v M u e S rt t a ep r s L D e th G Re I Po E Bu lg Hu ng m Cy hu Greo Lux t Ne ech R Li Cz Source: Eurofound, Fifth EWCS 16 / Foundation Focus / issue 12 / December 2012 A simple picture of a complex story Graphical representations are an Differences across life stages speed. The differences between age groups important tool for Eurofound to present seem to be quite similar among men and complex, multifaceted messages in The figure shows changes in working women. Among both men and women, those an engaging and accessible way. In conditions for men and women across under 25 are positioned more to the bottom Sustainable work and the ageing different life stages. Overall, women are right than other age groups. This means that workforce, a report based on the fifth positioned more to the left and bottom of they are more likely to be faced with poor job the graph than men. This suggests that European Working Conditions Survey, content and more strenuous tasks. The age women are slightly less exposed to physically the authors have used a number of groups from 25 to 54 are quite close to each strenuous tasks, night schedules and high other, with men being positioned slightly graphs that effectively tell a complicated story in a single picture. The figure on this page is one of those graphs, and it How working conditions vary with age for men and women gives a good insight into the differences in working conditions between men and women of different ages. Visualising dimensions of work The graph positions different groups of workers in a multidimensional space. The dimensions are identified by carrying out a statistical analysis (multiple correspondence analysis) that groups working conditions based on how often they occur together. For instance, people who work shifts are also likely to work nights, are often faced with Less More tight deadlines and often have to work at strenuous strenuous high speed. These findings enabled three interpretable dimensions to be identified and plotted on a graph. The first is the extent to which work is strenuous, and is represented along a line that runs from the centre left (less strenuous) to the centre right (more strenuous). The second is the extent to which the work involves time constraints; this line runs from the bottom left (fewer time constraints) to the top right (more time constraints). And finally richness of the job content, the line for which runs from the bottom right (less rich content) to the top left (more rich content). Once the multidimensional space has been defined, groups of workers can be positioned on it based on the characteristics of their work. Note: M = men, W = women; each marker represents a fi ve-year age bracket. 17 more towards the top of the graph and women slightly more towards the bottom left. Physical and time pressures ease with age There are, however, clear age effects for workers aged 55–59 and those aged over 60. Starting from workers aged 50–54 and accelerating for those aged 55–59 and aged over 60, the lines for both men and women move towards the bottom left. This implies that men and women aged over 55 are increasingly less likely to be faced with time constraints, problems of schedules and physical arduousness of tasks. These lower levels in physical and time-related pressures among older workers can be the result of a number of things. Firstly, there is likely to be a selection effect: workers in high-pressure or strenuous jobs are more likely to exit the workforce at an earlier age, leaving only those that show lower levels of exposure. Secondly, older workers might move to different jobs that are less demanding. And thirdly, older workers might stay in their existing jobs, but the demand levels of the jobs are adjusted. When interpreting these findings it is important to avoid a ‘deficit model’ of ageing, in which ageing is considered to result in a natural and progressive loss of abilities. People are not passive spectators of their own ageing. As workers grow older, they are likely to compromise between the requirements of the task and their actual capacities, by developing new capacities to compensate for the age-induced reduction of other capacities. Clearly, the ability of workers to implement these strategies and, consequently, their chances of succeeding will depend on the organisation of work. Gijs van Houten 18 / Foundation Focus / issue 12 / December 2012 FURTHER READING Appelbaum, L.D. (2012), Reconnecting to work, Upjohn Institute, Kalamazoo. Borelli, S. and Veille, P. (2012), Quality of employment in Europe: Legal and normative perspectives, Peter Lang, Brussels. Dohorty, P., Kira, M. and Shani, A.B. (2009), Creating sustainable work systems, Routledge, Abington. Eurofound (2011), ERM report 2011 - Public instruments to support restructuring in Europe, Publications Office of the European Union, Luxembourg. Eurofound (2011), Shifts in the job structure in Europe during the Great Recession, Publications Office of the European Union, Luxembourg. Eurofound (2012), Born global: The potential of job creation in new international businesses, Eurofound, Dublin. Eurofound (2012), ERM report 2012 - After restructuring: Labour markets, working conditions and life satisfaction, Publications Office of the European Union, Luxembourg. Eurofound (2012), Industrial relations and working conditions developments in Europe 2011, Dublin. Eurofound (2012), NEETs – Young people not in employment, education or training: Characteristics, costs and policy responses in Europe, Publications Office of the European Union, Luxembourg. Eurofound (2012), Quality of work and employment: A policy tool towards inclusive and sustainable growth, Conference report, Eurofound, Dublin. Eurofound (2012), Third European Quality of Life Survey – Quality of life in Europe: Impacts of the crisis, Publications Office of the European Union, Luxembourg. Eurofound (2012), Trends in job quality, Publications Office of the European Union, Luxembourg. Eurofound (forthcoming), European Jobs Monitor Annual report 2012, Publications Office of the European Union, Luxembourg. Eurofound (forthcoming), Creation and development of jobs in care and support services for people with disabilities or health problems, Dublin. European Central Bank (2012), Euro area labour markets and the crisis, Frankfurt am Main. European Commission (2012), Joint employment report, Annex to COM (2012)750 of 28 November 2012, Brussels. European Commission (2012), Labour market developments in Europe 2012, European economy, Brussels. European Commission (2012), Moving youth into employment, COM(2012)727 final, Brussels. European Commission (2012), Towards a job-rich recovery, COM(2012) 173 final, Brussels. Fernandez-Macias, E., Hurley, J. and Storrie, D. (2012), Transformation of the employment structure in the EU and USA, 1995-2007, Palgrave Macmillan, Houndmills. Munoz de Bustello, R., Fernandez-Macias, E., Anton, K.-I. and Esteve, F. (2011), Measuring more than money: The social economics of job quality, Edward Elgar, Cheltenham. OECD (2011), Divided we stand: Why inequality keeps rising, OECD Publishing, Paris. OECD (2012), OECD Employment Outlook 2012, OECD Publishing, Paris. World Bank (2012), World development report 2013: Jobs, World Bank, Washington. Jan van Damme EF/12/77/EN 19 www.eurofound.europa.eu The European Foundation for the Improvement of Living and Working Conditions is a tripartite EU body, whose role is to provide key actors in social policymaking with findings, knowledge and advice drawn from comparative research. Eurofound was established in 1975 by Council Regulation EEC No. 1365/75 of 26 May 1975. ISSN 1725-6763 4 5 TJ-AH-12-002-EN-C