Trade union training on employment policies  ITCILO, Turin, March 2004

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Trade union training on employment policies ITCILO, Turin, March 2004

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2. Labour market policies Concepts and definitions Presented by Nicolas Serrière, ITCILO

3. Key words and concepts labour Labour force Labour market Labour market information Labour market analysis Labour market policy

4. Labour Simple dictionary definition Labour is very hard work (BBC English Dictionary) Economists: Labour is a production factor International Labour Organisation “labour is not a commodity” Du Petit Robert, l’ethymologie du travail: deriver du verbe travailler, qui est lui une deformation du terme latin populaire “tripaliare”, qui veut dire torturer, tourmenter avec l’instrument de torture tripalium, que les romains utilisaient pour punir les esclaves rebelles… Explain labour vs. employment : L’emploi désigne tout processus d’affectation des personnes à des tâches économiquement reconnues, le plus souvent rémunérées Toute personne qui travaille n’a pas necessairement un emploi. Il n’est d’ailleurs pas recensé dans les statistiques officielles. 50% des heures travaillees en France sont des heures de travail domestique non-remunerees. L’economie informelle – 70% des personnes occupees La Declaration de Philadelphie du BIT fixe au BIT son mandat en ce qui concerne les conditions de travail: * la réglementation des heures de travail, * la fixation d'une durée maximum de la journée et de la semaine de travail, * le recrutement de la main-d'oeuvre, * la lutte contre le chômage, la garantie d'un salaire assurant des conditions d'existence convenables, * la protection des travailleurs contre les maladies générales ou professionnelles et les accidents résultant du travail, * la protection des enfants, des adolescents et des femmes, les pensions de vieillesse et d'invalidité, la défense des intérêts des travailleurs occupés à l'étranger, l'affirmation du principe "à travail égal, salaire égal", l'affirmation du principe de la liberté syndicale, l'organisation de l'enseignement professionnel et technique et autres mesures analogues Du Petit Robert, l’ethymologie du travail: deriver du verbe travailler, qui est lui une deformation du terme latin populaire “tripaliare”, qui veut dire torturer, tourmenter avec l’instrument de torture tripalium, que les romains utilisaient pour punir les esclaves rebelles… Explain labour vs. employment : L’emploi désigne tout processus d’affectation des personnes à des tâches économiquement reconnues, le plus souvent rémunérées Toute personne qui travaille n’a pas necessairement un emploi. Il n’est d’ailleurs pas recensé dans les statistiques officielles. 50% des heures travaillees en France sont des heures de travail domestique non-remunerees. L’economie informelle – 70% des personnes occupees La Declaration de Philadelphie du BIT fixe au BIT son mandat en ce qui concerne les conditions de travail: * la réglementation des heures de travail, * la fixation d'une durée maximum de la journée et de la semaine de travail, * le recrutement de la main-d'oeuvre, * la lutte contre le chômage, la garantie d'un salaire assurant des conditions d'existence convenables, * la protection des travailleurs contre les maladies générales ou professionnelles et les accidents résultant du travail, * la protection des enfants, des adolescents et des femmes, les pensions de vieillesse et d'invalidité, la défense des intérêts des travailleurs occupés à l'étranger, l'affirmation du principe "à travail égal, salaire égal", l'affirmation du principe de la liberté syndicale, l'organisation de l'enseignement professionnel et technique et autres mesures analogues

5. Labour force all those, above a specified age, and during a specified brief period, who are either working, or available for work and seeking it Check ILO definition what is “working” = economically active but excludes in particular (women’s) domestic chores refer to quality factor; indicator = levels of education and skill C’est de là, vous vous souvenez, qu’on calcule le taux d’activitéCheck ILO definition what is “working” = economically active but excludes in particular (women’s) domestic chores refer to quality factor; indicator = levels of education and skill C’est de là, vous vous souvenez, qu’on calcule le taux d’activité

6. Labour force *unemployment= open unemployment: define = very strict therefore low unemployment in (developing) countries without social safety nets *under-employment (is not part-time work) = disguised unemployment , involuntary because: less hours worked than wanted (visible, i.e measurable) below level of capacity (invisible) (more people employed than needed) low productivity as a result of poor health or nutrition or because lack of complementary inputs *See ILO/ARTEP 1992 box on p.33 (features of un- and underemployment in LDC’s) On peut voir la definition plus ou moins stricte du chomage Lorsque le systeme le permet, c’est a dire qu’il dispose des instruments necessaires pour definir si une personne est disponible, mais pas a la recherche de travail, alors c’est tout a son avantage d’utiliser la definition stricte du chomage. Mais il faut une organisation adaptee Lorsque cette organisation fait defaut, dans les economies avec moins de capacites d’enquete, et c’est le cas en Afrique, il est plus commode d’utiliser une definition large. Evidemment, cela se ressentira sur les resultats finaux… The difference between economically active population and the labour force? It is more or less the same thing. What changes, principally, is the time frame. The EAP is, by definition, all persons of either sex who furnish the supply of labour for the production of economic goods and services during a specified time-reference Some precisions: those ill, technically unemployed, maternity leave etc. are considered in employment Unpaid family workers: should be considered in self employment, irrespective of the numbers of hours worked *unemployment= open unemployment: define = very strict therefore low unemployment in (developing) countries without social safety nets *under-employment (is not part-time work) = disguised unemployment , involuntary because: less hours worked than wanted (visible, i.e measurable) below level of capacity (invisible) (more people employed than needed) low productivity as a result of poor health or nutrition or because lack of complementary inputs *See ILO/ARTEP 1992 box on p.33 (features of un- and underemployment in LDC’s) On peut voir la definition plus ou moins stricte du chomage Lorsque le systeme le permet, c’est a dire qu’il dispose des instruments necessaires pour definir si une personne est disponible, mais pas a la recherche de travail, alors c’est tout a son avantage d’utiliser la definition stricte du chomage. Mais il faut une organisation adaptee Lorsque cette organisation fait defaut, dans les economies avec moins de capacites d’enquete, et c’est le cas en Afrique, il est plus commode d’utiliser une definition large. Evidemment, cela se ressentira sur les resultats finaux… The difference between economically active population and the labour force? It is more or less the same thing. What changes, principally, is the time frame. The EAP is, by definition, all persons of either sex who furnish the supply of labour for the production of economic goods and services during a specified time-reference Some precisions: those ill, technically unemployed, maternity leave etc. are considered in employment Unpaid family workers: should be considered in self employment, irrespective of the numbers of hours worked

7. Employed (1) Persons engaged in economic activity or production, such as: Employees persons who during the reference period performed some work for wage, salary or family gain in cash or in kind Contributing family worker unpaid persons who engaged in economic activity as defined for at least one hour during the reference period Own account worker Person who operates his or her own enterprise, BUT hires no employee Employer Person who operates his or her own enterprise, and hires one or more employees The legal status of the business is used to classify owner-managers of incorporated businesses as employees rather than as employers or own account workers. If the business is incorporated, that is the individual can not be held personally liable should it become bankrupt: these people, whether or not they employ people, are classified as employees. If the business is unincorporated, and hence the owner is liable for the enterprise, those who hire employees are classified as employers, and those who do not are classified as own account workers.The legal status of the business is used to classify owner-managers of incorporated businesses as employees rather than as employers or own account workers. If the business is incorporated, that is the individual can not be held personally liable should it become bankrupt: these people, whether or not they employ people, are classified as employees. If the business is unincorporated, and hence the owner is liable for the enterprise, those who hire employees are classified as employers, and those who do not are classified as own account workers.

8. Unemployed Without work without paid employment or self-employment during the reference period (one week) Currently available for work or available for employment or self employment during the reference period (four weeks) Actively seeking work through active steps taken during a specified recent period to seek paid employment or self-employment An unemployed person is someone who meets all those criteria.An unemployed person is someone who meets all those criteria.

9. Under-employed Time-related In relation to an alternative employment situation Inadequate employment situation For those who work but who want to change, for various reasons (insufficient use of skills, inadequate income, excessive hours…) These are not exclusive Criteria: during survey, the person must be willing and available to work more hours want to change for, or have tried to find, better paid employment Etc.… An unemployed person is someone who meets all those criteria.An unemployed person is someone who meets all those criteria.

10. Labour force *Employment data are always expressed as a percentage of the labour force; e.g an unemployment rate of five per cent means that one of every twenty economically active, i.e. labour force participants, is not working and actively looking for a job. *Introduce notion of employment status (wage-employment, self-employment, unpaid family worker, employer , if not included among self-employed) *Major differences among countries by level of development *EXERCICES: calculate from raw data ( aa, bb, cc, dd) (by sex and education level) labour force participation rates, unemployment rates, …..*Employment data are always expressed as a percentage of the labour force; e.g an unemployment rate of five per cent means that one of every twenty economically active, i.e. labour force participants, is not working and actively looking for a job. *Introduce notion of employment status (wage-employment, self-employment, unpaid family worker, employer , if not included among self-employed) *Major differences among countries by level of development *EXERCICES: calculate from raw data ( aa, bb, cc, dd) (by sex and education level) labour force participation rates, unemployment rates, …..

11. Labour force Qu’entend-on par travail? Qui sont economiquement actif. Mais cela exclut toute activite non-economique, comme par exemple le travail domestique (ordinairement fait par les femmes)Qu’entend-on par travail? Qui sont economiquement actif. Mais cela exclut toute activite non-economique, comme par exemple le travail domestique (ordinairement fait par les femmes)

12. Labour force – stocks and flows

13. The labour market

14. The labour market In labour markets, exchanges are taking place: negotiations between employers and workers (or their representatives). The employer, ready to employ a certain quantity and quality of workers, considers alternatives to hiring labour, if any exist, in the light of the wages he (or she) is expected to pay; workers consider alternative jobs (if available) in the light of wages offered and other conditions of employment. The outcome of their respective considerations may or may not be a match; if it is, there is a price (wage) the employer is willing to pay and the worker is prepared to accept. At the end of the day, however, it may turn out that the supply of labour exceeded the demand, or vice versa. The imbalance may or may not be explained in terms of wage levels. If employers don’t find enough candidates they may wish (or have to) raise the wage they had in mind, and if there are too many they would certainly be tempted to lower it. But then, the workers they are looking for may not exist whatever the wage offered, or, in the alternative case, there may be a legal minimum wage, even in circumstances where there are by far not enough jobs for all who are seeking one. In labour markets, exchanges are taking place: negotiations between employers and workers (or their representatives). The employer, ready to employ a certain quantity and quality of workers, considers alternatives to hiring labour, if any exist, in the light of the wages he (or she) is expected to pay; workers consider alternative jobs (if available) in the light of wages offered and other conditions of employment. The outcome of their respective considerations may or may not be a match; if it is, there is a price (wage) the employer is willing to pay and the worker is prepared to accept. At the end of the day, however, it may turn out that the supply of labour exceeded the demand, or vice versa. The imbalance may or may not be explained in terms of wage levels. If employers don’t find enough candidates they may wish (or have to) raise the wage they had in mind, and if there are too many they would certainly be tempted to lower it. But then, the workers they are looking for may not exist whatever the wage offered, or, in the alternative case, there may be a legal minimum wage, even in circumstances where there are by far not enough jobs for all who are seeking one.

15. The labour market The market consists of a demand side, based on the needs of employers, and a supply side, which reflects the desires of people to obtain employment. The demand side represents the total number of jobs available in the economy based on the decisions of firms to produce goods and services. In other words, the demand for labour services is driven by the level of economic activity. Job openings arise from 2 sources: the labour required for firms to expand their activities and replacement needs due to retirements and other separations. The supply of labour consists of people currently working or looking for employment. The supply of labour is influenced by a variety of factors including demographics, education and training systems, wage rates, social norms and level of economic activity. The labour market in total consists of all the firms that provide jobs and all the workers, both the employed and the unemployed who are seeking jobs. The market tries to match the employment requirements of firms with workers searching for jobs. Employers market their vacancies and people looking for employment search for opportunities. Various mechanisms exist to assist firms and workers to find each other, such as Employment ServicesThe market consists of a demand side, based on the needs of employers, and a supply side, which reflects the desires of people to obtain employment. The demand side represents the total number of jobs available in the economy based on the decisions of firms to produce goods and services. In other words, the demand for labour services is driven by the level of economic activity. Job openings arise from 2 sources: the labour required for firms to expand their activities and replacement needs due to retirements and other separations. The supply of labour consists of people currently working or looking for employment. The supply of labour is influenced by a variety of factors including demographics, education and training systems, wage rates, social norms and level of economic activity. The labour market in total consists of all the firms that provide jobs and all the workers, both the employed and the unemployed who are seeking jobs. The market tries to match the employment requirements of firms with workers searching for jobs. Employers market their vacancies and people looking for employment search for opportunities. Various mechanisms exist to assist firms and workers to find each other, such as Employment Services

16. The labour market Transactions between employers and workers are therefore described by the term “labour marker”. This expression, although very common, hides complex notions. In the end, market relations, i.e. the confrontation of supply and demand forces, are characterised, for a given product, by the price of this product. Labour can therefore appear as just another commodity, supplied by those with free time, and willing, in exchange of a wage, to forego that free time. At the same time, labour is requested by firms as one factor of production. Yet, if supply and demand forces clearly exist, the product that is exchanged is far from constant: workers have varioous levels of qualification and skills, and work requirements vary from one another. Moreover, as people come and go all the time, conditions of employment evolve continuously and, to be as close to reality as possible, work contracts would have to be renegociated on a practically daily basis. This would, of course, be impossible and does not happen: in that sense, the labour market does not function as a real market. Labour, however, is not just any product on a market place. It is part of the workers themselves; their views about the workplace are an inherent part of a labour market transaction. Consequently, the non-monetary aspects of employment - organisational culture, hours of work, career opportunities, risk of injury, location - are important considerations for workers. Using the term labour market, therefore, is some kind of a theoretical shortcut. The advantages of refering to this negotiations as a labour market far outweigh its disadvantages, and one must always keep in mind what differentiate the labour market from other commodity markets.Transactions between employers and workers are therefore described by the term “labour marker”. This expression, although very common, hides complex notions. In the end, market relations, i.e. the confrontation of supply and demand forces, are characterised, for a given product, by the price of this product. Labour can therefore appear as just another commodity, supplied by those with free time, and willing, in exchange of a wage, to forego that free time. At the same time, labour is requested by firms as one factor of production. Yet, if supply and demand forces clearly exist, the product that is exchanged is far from constant: workers have varioous levels of qualification and skills, and work requirements vary from one another. Moreover, as people come and go all the time, conditions of employment evolve continuously and, to be as close to reality as possible, work contracts would have to be renegociated on a practically daily basis. This would, of course, be impossible and does not happen: in that sense, the labour market does not function as a real market. Labour, however, is not just any product on a market place. It is part of the workers themselves; their views about the workplace are an inherent part of a labour market transaction. Consequently, the non-monetary aspects of employment - organisational culture, hours of work, career opportunities, risk of injury, location - are important considerations for workers. Using the term labour market, therefore, is some kind of a theoretical shortcut. The advantages of refering to this negotiations as a labour market far outweigh its disadvantages, and one must always keep in mind what differentiate the labour market from other commodity markets.

17. The labour market Virtual space In which are matched, in a more or less organised manner… The supply and demand Of all sorts of labour And in which wages Are determined.

18. The labour market Between 1996 and 1999 both the demand and supply in this imaginary labour market increased. Only in 1998 did demand outstrip supply, meaning that certain vacancies remained unfilled and, probably, that certain wages were under an upward pressure. The equilibrium found in early 1999 is more likely, however, an outcome of factors other than wage levels, notably the sudden economic crisis starting in mid-1998 and manifest in a drastic reduction in domestic output. By the way, what exactly do the figures on the vertical axis tell us? Let the group decide but the answer is: “nothing really”. Is the triangle of 1998 an indication of the number of unemployed? Between 1996 and 1999 both the demand and supply in this imaginary labour market increased. Only in 1998 did demand outstrip supply, meaning that certain vacancies remained unfilled and, probably, that certain wages were under an upward pressure. The equilibrium found in early 1999 is more likely, however, an outcome of factors other than wage levels, notably the sudden economic crisis starting in mid-1998 and manifest in a drastic reduction in domestic output. By the way, what exactly do the figures on the vertical axis tell us? Let the group decide but the answer is: “nothing really”. Is the triangle of 1998 an indication of the number of unemployed?

19. The labour market

20. The labour market

21. Employment in developping countries

22. Segmentation by, for example: geographic location gender industrial sector occupation level of income level of education formal or informal sector The labour market les marchés du travail sont, pour le moins, souvent segmentés: Il ya les “bons emplois” , et les “mauvais” emplois avec des différences dans les salaires et dans les conditions entre les travailleurs et avec d’autres caractéristiques individuelles similaires, tels que l’ âge, le niveau de formation, l’expérience dans le travail Les relations d’emploi sont stratifiées et compartimentées. Le recrutement et la gestion d’un cadre s’effectuent selon des règles et avec des négociations qui ne sont pas les mêmes que pour une secrétaire ou un chauffeur. Si le salaire constitue le prix du travail tel qu’il est débattu entre les parties intéressées – souvent par l’intermédiaire de syndicats qui élaborent et signent des accords salariaux –, ce prix incorpore de multiples contraintes avec les cotisations sociales, les profils de carrière, etc. Deux contrastes s’imposent ici. D’une part, l’écart entre le salaire moyen d’un ouvrier et celui d’un ingénieur peut varier notablement : il est de un à trois en France, et de un à deux en Allemagne. D’autre part, le profil temporel des salaires montre rapidement pour plafonner dans le cas ouvrier, alors que la croissance se poursuit durablement pour les ingénieurs. les marchés du travail sont, pour le moins, souvent segmentés: Il ya les “bons emplois” , et les “mauvais” emplois avec des différences dans les salaires et dans les conditions entre les travailleurs et avec d’autres caractéristiques individuelles similaires, tels que l’ âge, le niveau de formation, l’expérience dans le travail Les relations d’emploi sont stratifiées et compartimentées. Le recrutement et la gestion d’un cadre s’effectuent selon des règles et avec des négociations qui ne sont pas les mêmes que pour une secrétaire ou un chauffeur. Si le salaire constitue le prix du travail tel qu’il est débattu entre les parties intéressées – souvent par l’intermédiaire de syndicats qui élaborent et signent des accords salariaux –, ce prix incorpore de multiples contraintes avec les cotisations sociales, les profils de carrière, etc. Deux contrastes s’imposent ici. D’une part, l’écart entre le salaire moyen d’un ouvrier et celui d’un ingénieur peut varier notablement : il est de un à trois en France, et de un à deux en Allemagne. D’autre part, le profil temporel des salaires montre rapidement pour plafonner dans le cas ouvrier, alors que la croissance se poursuit durablement pour les ingénieurs.

23. A free market? = No government intervention = in a “free market”, demand and supply (the “market forces”) determine together the price of labour and, hence, how much of it will be employed in free (labour) markets the forces of supply and demand are allowed to operate unhampered by government regulation or other interference; decisions by individual “buyers” and “sellers”are coordinated by movement in prices. This is the liberal stand: 1/ more flexibility allows for better functionning: no minimum wge, no minimum working hours, no obstacles to laying offin free (labour) markets the forces of supply and demand are allowed to operate unhampered by government regulation or other interference; decisions by individual “buyers” and “sellers”are coordinated by movement in prices. This is the liberal stand: 1/ more flexibility allows for better functionning: no minimum wge, no minimum working hours, no obstacles to laying off

24. It doesn’t exist! Labour is not a commodity Workers have rights Workers have preferences Competition is never perfect Contractual relations are biased There is a lack of information Decisions are subject to regulations Whether formal or not A free market? S’il etait parfait, c’est si il n’y avait pas de cloisonnement, c’est a dire d’obstacle qui pourrait entraver la libre determination des salaires ou la mobilite des travailleurs La plupart des relations économiques sont soumises à des normes et à des institutions de surveillance. Le marché du travail est sans doute l’illustration la plus voyante de ce contrôle collectif exercé sur les arrangements individuels, avec l’édifice structuré du droit du travail, la pratique des négociations collectives, l’existence de salaires minimums et de prélèvements obligatoires, et les normes des conditions de travail, parmi lesquelles les horaires et les heures supplémentaires. En France, les « quarante heures » ont été imposées en 1936 et, en 1998 et en 2000, les deux lois « Aubry » ont instauré les « 35 heures ». L’emploi est une réalité fortement socialisée, même si elle résulte d’initiatives individuelles. Le rôle de l’État est d’ailleurs double et, de ce fait, ambigu : l’État impose les règles, sanctionne les manquements, mais l’État est aussi, et massivement, un employeur qui a ses propres objectifs, voire ses propres tentations. S’il etait parfait, c’est si il n’y avait pas de cloisonnement, c’est a dire d’obstacle qui pourrait entraver la libre determination des salaires ou la mobilite des travailleurs La plupart des relations économiques sont soumises à des normes et à des institutions de surveillance. Le marché du travail est sans doute l’illustration la plus voyante de ce contrôle collectif exercé sur les arrangements individuels, avec l’édifice structuré du droit du travail, la pratique des négociations collectives, l’existence de salaires minimums et de prélèvements obligatoires, et les normes des conditions de travail, parmi lesquelles les horaires et les heures supplémentaires. En France, les « quarante heures » ont été imposées en 1936 et, en 1998 et en 2000, les deux lois « Aubry » ont instauré les « 35 heures ». L’emploi est une réalité fortement socialisée, même si elle résulte d’initiatives individuelles. Le rôle de l’État est d’ailleurs double et, de ce fait, ambigu : l’État impose les règles, sanctionne les manquements, mais l’État est aussi, et massivement, un employeur qui a ses propres objectifs, voire ses propres tentations.

25. Which regulations? official (laws and decrees) Employment, laying off, security at work Minimum wage Collective negotiation Wage and working conditions Shaped by the market Mobility, availability of specific skills En pratique, c’est plus compliqué, Les travailleurs sont plutot preneurs des salaires. Ils ne peuvent pas agir directement sur le niveau de l’emploi, sauf si: - ils s’organisent (au travers des syndicats) ils possede un talent rare a un moment donné (informaticiens,...) les lois les protegent Il faut egalement prendre en compte un nombre de facteurs subjectif. La resistance au changement “un tiens vaut mieux que 2 tu l’auras”, la reticence a quitter un environnment connu, un milieu familial, un tissus social. This is why, in opposition to the liberal position, governements may hold that it is necessary to protect workers, and support decent work En pratique, c’est plus compliqué, Les travailleurs sont plutot preneurs des salaires. Ils ne peuvent pas agir directement sur le niveau de l’emploi, sauf si: - ils s’organisent (au travers des syndicats) ils possede un talent rare a un moment donné (informaticiens,...) les lois les protegent Il faut egalement prendre en compte un nombre de facteurs subjectif. La resistance au changement “un tiens vaut mieux que 2 tu l’auras”, la reticence a quitter un environnment connu, un milieu familial, un tissus social. This is why, in opposition to the liberal position, governements may hold that it is necessary to protect workers, and support decent work

26. International regulations the ILO Declaration on Fundamental Principles and Rights at Work (1998) freedom of association and the effective right to collective bargaining the elimination of all forms of forced or compulsory labour the effective abolition of child labour the elimination of discrimination in employment and occupation

27. Factors affecting labour markets affecting both supply and demand side failing institutions labour market information political instability, conflict natural disasters health crises

28. factors affecting labour markets affecting the supply side population growth changes in labour force participation migration within and between countries the state of education and training

29. factors affecting labour markets affecting the demand side: economic/financial crises changes in economic structure technological change (ICT!) process innovation product innovation globalisation

30. selected labour market issues gender issues child labour youth unemployment people on the move HIV/AIDS Ainsi que mis en evidence dans l’expose sur les tendances du marche sur l’emploi, les grands problemes du marche du travail sont….Ainsi que mis en evidence dans l’expose sur les tendances du marche sur l’emploi, les grands problemes du marche du travail sont….

31. two questions: does your country face serious employment (-related) problems of any sort? what can the government do about it? see Godfrey’s draft manual pp10-11see Godfrey’s draft manual pp10-11

32. answer: it is the main business of the government, based on adequate information, to design and implement policies meant to prevent or to correct problems affecting the country and its population see Godfrey’s draft manual pp10-11see Godfrey’s draft manual pp10-11

33. Proportion of people living on less than $1 a day (%)

34. labour market policies measures meant to address failure in labour markets, in particular measures that reduce unwanted distortions in the process of supply meeting demand. C’est donc a une modification des regles de fonctionnement du marche du travail que visent les politiques du marché du travail (egalement appelee un temps politique sur la main d’oeuvre) En ligne de mire, ce sont les niveaux de salaires mais egalement la mobilite de la main d’oeuvre (geopgraphique mais dans l’emploi aussi) L’objectif: rendre plus flexible la régulation pour dynamiser la demande de main-d’œuvre. En applicant des règles “socialement acceptables”! C’est donc a une modification des regles de fonctionnement du marche du travail que visent les politiques du marché du travail (egalement appelee un temps politique sur la main d’oeuvre) En ligne de mire, ce sont les niveaux de salaires mais egalement la mobilite de la main d’oeuvre (geopgraphique mais dans l’emploi aussi) L’objectif: rendre plus flexible la régulation pour dynamiser la demande de main-d’œuvre. En applicant des règles “socialement acceptables”!

35. labour market policies for whom are these policies intended? whom do they actually benefit? whom do they by-pass?

36. labour market policies

37. labour market policies

38. labour market policies

39. labour market policies

40. active labour market policies the primary objectives are… the placement of the unemployed the improvement of the productivity and income of the under-employed

41. active labour market policies 3 main tools to carry out these objectives: Public employment services training programmes direct job creation programmes (wage or self-employment)

42. active labour market policies for instance… facilitating the contact between workers and employers (e.g. job search assistance, public employment services, mobility incentives) increasing the supply of needed skilled workers (e.g. training of the unemployed, specific programmes for the disabled) increasing the demand for workers (e.g. direct job creation, incentives to employers, self-employment/ SME promotion)

43. ALMPs: public employment services keep a record of job seekers’ requests match as much as possible employers’ needs with job seekers’ requests register the unemployed for their unemployment benefits

44. ALMPs: training programmes they have a dual role improve the productivity of the employed improve the employability of the unemployed

45. ALMPs: training programmes they mainly target: the youth women the unemployed, and especially the long term unemployed the disabled

46. ALMPs: employment support 4 kinds of employment support programmes employment creation in the private sector employment creation in the public sector self-employment assistance support for vulnerable or specific groups (disabled, women...)

47. ALMPs: direct job creation in the private sector recruitment incentives subsidies (on social contributions, wages) tax incentives

48. ALMPs: direct job creation in the public sector, to reactivate the economy public services (maintenance of local infrastructure) public works aim must be to create sustainable employment

49. ALMPs: providing support for self-employment by providing credit equal to the total amount of unemployment benefits promoting funds for enterprise creation

50. ALMPs On the positive side… Improve matching between supply and demand Reduce discouraged-workers effect Keeps wage pressure low, and therefore pushes supply higher Improves productivity, profitability and competitiveness of workers

51. ALMPs The risks… Deadweight loss Paying to help those who would find work anyway! Substitution effect No new jobs creation, if those helped only get someone else’s job Displacement effect Wage subsidies creating unfair competitive advantage and pushing other firms to lay off workers

52. passive labour market policies primary objective: income support to the unemployed relevant particularly in industrialised countries (or those with capacity: Korea)

53. passive labour market policies primary objective: income support to the unemployed early retirement severance pay unemployment insurance unemployment assistance public works programmes

54. Thank you

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