Labour Markets and the
European Employment
Strategy
RECWOWE/ESPAnet
University of Edinburgh
Learning Objectives
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By the end of this session and in
conjunction with the reading you
should have a basic knowledge of the
diversity of labour markets across
the European Union and beyond.
You should also have gained a basic
critical introduction to the processes
of the European Employment
Strategy (EES).
Two Competing Visions
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Free Market Model:
Neo-Liberal
Stresses individual success, high profits,
short term gain
High levels of Competition
Individual and Performance Related Pay
Minimum Standards
Rational Choice
Two Competing Visions
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European Social Model
Collective Consensus
Job Creation Long Term Gain
Full Employment
Job Security
Egalitarianism
Group Interests and the Social Partners
High Social Standards
Relative Effectiveness of Free
Market system
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Outstripped EU in terms of job
creation and low unemployment
Arguments for flexibility and
cutbacks on the costs of employment
Reducing worker protection makes
the US more competitive within the
world of globalisation
Relative Effectiveness of ESM
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Income distribution more equal in EU
The US has more poverty. Poverty in
the US is three times higher in the
general population
Greater job insecurity as a result of
diminishing Union power
Quality of jobs
Poorer productivity in the US
The Single Market
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Free Market
Improved International
Competitiveness
A Commitment to fair competition
A Level Playing Field
Reconciling Diversity?
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The limits of EU Competence and
Capacity
Variation in Policy Design
Variation in Member State Regimes
and their Policy Performance
Women’s Employment Rates
Country
1997
2003
2004
2005
Czech Republic
:
56.9
56
56.3
Denmark
69.1
71.6
71.6
71.9
Germany
55.3
58.1
59.2
59.6
Greece
39.3
41.7
45.2
46.1
Spain
34.6
41.3
48.3
51.2
Poland
51.3
48.9
46.2
46.8
Portugal
56.5
60.5
61.7
61.7
Sweden
67.2
70.9
70.5
70.4
United Kingdom
63.1
64.7
65.6
65.9
The EU Solution
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From Essen to Amsterdam
Insertion of Employment in the
Treaty of Amsterdam 1997
The inauguration of the European
Employment Strategy
The Formal introduction of the Open
Method of Coordination
ToA: VII Employment Title
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Legal codification of European
Employment Strategy
Roots I: Delors White Paper
(Goetschy, 1999) – Commission as a
norm entrepreneur
Roots II: Larsson Report “Put Europe
To Work” EEI (Johansson, 1999) –
transnational interest coalition in
Party of European Socialists
Lisbon 2000
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“to become the most competitive and
dynamic knowledge-based economy
in the world, capable of sustainable
economic growth with more and
better jobs and greater social
cohesion”.
The Process of the EES
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Fixed Guidelines for the Union combined
with specific timetables for achieving the
goals set jointly by the European
Commission and the European Council
Establishing Quantitative and Qualitative
Indicators and Benchmarks as a means of
comparing best practice
Translating the guidelines into national
and regional policies through monitoring,
evaluation and peer review organised as a
process of mutual learning
Integrated Employment Guidelines
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Following a proposal from the
Commission, the European Council agrees
every year on a series of guidelines
setting out common priorities for Member
States' employment policies:
Three Overarching Objectives 2005-2008
Full Employment
Improving Quality and Productivity at
Work
Strengthening Social and Territorial
Cohesion
Three Major Priorities
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Attract and retain more people to
employment, Increase Labour
Supply, and Modernise social
Protection Systems
Improve Adaptability of Workers and
Enterprises
Increase Investment in Human
Capital through better education and
skills
The EES in Action
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EU annual progress report: the
Commission reviews progress made at
both national and Community level, based
on regular monitoring of the actions listed
in the Community Lisbon Programme and
on an evaluation of the implementation of
the Member states national programmes.
On the basis of this annual assessment,
the Commission may, if necessary, identify
further actions to revise the Community
Lisbon Programme.
The EES in Action
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National Reform Programmes: every
Member State draws up a programme in
which is described how these Guidelines
are going to be designed and implemented
nationally.
- Joint Employment Report: the
Employment chapter of the annual
progress report is adopted by the Council
to form the Joint Employment Report
- Recommendations: The Council may
decide, by qualified majority, to issue
country-specific Recommendations upon a
proposal by the Commission.
Major Advantages of EES (and the
OMC for that matter)
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A ‘Third Way’ – Opens up new and
sustainable ways of doing business
Respects National Diversity whilst
addressing common concerns
A tool for building consensus around
the European Social Model
A mechanism for policy learning
Major Disadvantages of EES
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Encroaches into policy domains
where the EU is not wanted
A threat to the original Community
Method
An imposition of a certain ‘type’ of
social policy
A lack of substantive impact – the
most damning of all the criticism
Assignment
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Does the OMC reconcile diversity
whilst addressing common concerns?
Is the OMC a promising form of
governance which encourages
mutual learning and cross-national
problem solving?
What methodological and theoretical
indicators would you use to assess
the OMC at national level?