In addition, the report shows that it has become easier for unemployed people to find a job. On the other hand, more flexible working arrangements have brought advantages to both firms and individuals, but have led in some cases to a divide between workers holding different types of contracts, with people in temporary employment and self-employment being less well protected.

Background

The Labour Market and Wage Developments in Europe report*) analyses the labour market from a macroeconomic perspective. It provides an analysis of recent employment and wage developments, looking at the euro area and the EU as a whole in comparison with its global trading partners. Each edition includes a thematic chapter that deepens the macro-economic analysis of a relevant issue. Previous editions of the report can be found here.

The proposal for a European Pillar of Social Rights, adopted by the Commission on 26 April 2017, sets out 20 key principles and rights to support fair and well-functioning labour markets and welfare systems.

*) http://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8040&furtherPubs=yes

Commissioner for Employment, Social Affairs, Skills and Labour Mobility, Marianne Thyssen, underlined that more people in Europe have been able to find a job; the EU witnesses the highest employment level ever recorded. The reason for this success is the EU states’ targeted policy reforms. However, she added, there are further challenges: the member states have to ensure fair working conditions and protection for all workers, independent of their employment status.

On the basis of the European Pillar of Social Rights, which was launched in April 2017, the Commission is working to modernise the rules on employment contracts and social protection to achieve better working and living conditions among the EU states.

The 2017 Labour Market and Wage Development Report shows that in 2016, wages in the euro area rose by 1.2% and they increased in almost all EU states: with comparatively low wage levels (such as the Baltics, Hungary and Romania) recorded the highest increases. This means wages are converging across Europe.

However, in many countries, the growth rate of wages is still lower than expected based on the recent falls in unemployment. In addition, in almost all EU states, wages of temporary workers are lower than those of permanent workers, especially in the states where the share of temporary employment is higher.

Delivering on the European Pillar of Social Rights, the Commission presented a legislative proposal to improve work-life balance of working parents and carers, and launched social partner consultations to modernise the rules on labour contracts and on access to social protection for all. These initiatives could provide answers (if adopted) to the challenges highlighted in this year's Labour Market and Wage Developments in Europe report, such as labour market segmentation and lack of protection of workers in non-standard forms of employment.

In the State of the Union address (2017), President Juncker confirmed the Commission’s commitment to move forward with the “Social Pillar” as an essential means to assert European values and create a deeper and fairer EU. “If we want to avoid social fragmentation, and social dumping in Europe, he said, then the EU states should agree on the European Pillar of Social Rights as soon as possible and as the latest at the Gothenburg summit in November”.  

The Social Summit for Fair Jobs and Growth will take place in Gothenburg, Sweden, on 17 November 2017; more information on the Summit sees: https://www.socialsummit17.se/ 

Source: http://europa.eu/rapid/press-release_IP-17-3867_en.htm?locale=en, and Latvian version:

http://europa.eu/rapid/press-release_IP-17-3867_lv.htm