European labour market must get stronger, says report
Posted Wed, Oct 28th 2009, 14:00 | Comments (0)
Welfare systems must encourage employment if they are to be sustainable, a new report has found.
The study, by Sweden’s Institute for Labour Market Policy Evaluation (IFAU), says that Europe’s ageing population means more people need to be in work if the economy is to cope with the trend.
“[T]he demographic trends are unfavourable for the sustainability of the welfare state,” the report says.
“[A] declining share of individuals in the working-age has to raise the necessary revenues to support the growing share of economically inactive individuals,” the report adds.
The report stresses that rather than reducing levels of insurance or income support, it is important for these welfare systems to have effective screening of disability claims, monitoring of behaviour, or a finite duration of benefit receipt.
The report makes no mention however of ensuring access to quality work and good working conditions so that employment does not have an unfair negative effect on people’s health.
A WHO report on the social and economic determinants of health says that poor work quality may affect mental health almost as much as loss of work, while work-related stress is associated with a greater risk of coronary heart disease.
“It is good for both the economy and health equity to make the promotion of fair employment and decent work a central focus in countries’ policy agendas,” the WHO report says.
While the IFAU findings show how properly targeted active labour market policies can help disadvantaged people get back into work, these policies should take health into account.
Discussions about labour market inclusion have been held by the Swedish Presidency of the EU, ahead of the launch of the 2010 European Year for Combating Poverty and Social Exclusion.
"We must make the path back to a healthier life and a return to work easier for those who have been excluded," said Swedish Minister for Social Security Cristina Husmark Pehrsson, pictured.
You can access the IFAU report from the Swedish Presidency website.
The WHO report on the social and economic determinants of health is available here.
Please go to this section of the European Commission website to find out more about the 2010 European Year for Combating Poverty and Social Exclusion.
