Flexibility@work 2013/2014 IOE GIRN meeting

Flexibility@work 2013/2014IOE GIRN meeting

Annemarie Muntz

ParisApril 9th, 2014

April 2014, Flexibility@work, GIRN2

fast facts randstad

April 2014, Flexibility@work, GIRN

skills mismatch

our environment: trends and developments

3

volatility

globalization

global migration

sectoral shifts

demographic changes

technological changes

persistent unemployment

new attitudes to work

job quality

research at the basis of our thought leadership

2007

2010

2012

2013

april 2014

April 2014, Flexibility@work, GIRN4

flexibility@work 2013development flexible employment 2001-2012

5 April 2014, Flexibility@work, GIRN

AU

Global Competitiveness Index score

labor market efficiency is key to competitivenessappropriate regulation on flexible labor helps to improve labor market efficiency1,

5

1,0

0,5

0,0

-0,5

-1,04,0 5,04,5 5,5 6,0

Labor Market Effectiveness Index score

market typemarket drivensocial dialoguelegislation drivenemerging market

Source: CIETT / BCG, adapting to change 2012

Based on BusinessEuropereform barometer

Based on WEF Global competetiviness report

R = 0,52

CH

US

GEFI

JP

SE

NL

DK

NO

AT

KO UK

ES

FR

IT

IR

BE

LUGR

PT

PL

CL

CZSI

HU

SK


flexible labor relations

flexibility@work 2013 research showed: NO structural worldwide growth of share of flexible labor relations in total employment since 2000

Source: Randstad/SEO, flexibility@work 2013


0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

EU Anglosaxon

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

EU Rhineland

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Scandinavia

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

EU Francophone

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

EU Mediterranean

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Eastern Europe

Self-employment

Fixed-term contracts

Agency work0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

United States

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

J apan

size flexible labor remains modestin all regions flexible labor constitutes less than a third of all employment

Source: Randstad/SEO, flexibility@work20138 April 2014, Flexibility@work, GIRN

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

structural growth agency workpenetration generally increases each economic cycle

Poland 1,0%

Italy 0,9%

Spain 0,5%

Japan 1,4%

Belgium 1,9%

France 2,0%

United States 2,0%

Germany 2,0%

Netherlands 2,7%

United Kingdom 3,8%

Source: Ciett, economic report


agency work provides growth and transitions

• agency work provides growth• German study shows

companies using agency work accelerate faster out of downturn

• revenue growth for agency work user organizations is 11% versus 6% without agency work

• agency work provides transitions• from education to work: in France 84%

of under 25 entering the labor market through TAW have never worked before

• from unemployment to work: in Italy 40% of unemployed or unexperienced find work through TAW

• from temporary to permanent employment: 48% of agency workers in the UK and 33% in the Netherlands find permanent work within a year

• transitions for target groups: in Belgium 12% of workers with a disadvantage work through agency work

Source: Eurociett / UNI Europa Project: “Temporary Agency Work and Transitions in the Labour Market”

Source: Ciett / BCG: Adapting to Change 2012


flexibility@work 2013key findings

• NO structural world-wide growth of flexible labor relations

• growth or decline of different types of flexible labor attributed to changes in local society, economic structures, institutions and legislation

• flexible labor in general, and agency work in particular, facilitates transitions to employment and bring new non-traditional labor market participants to the labor market

• strong correlation between the share of flexible labor and economic growth, particularly with respect to fixed-term contracts and agency work

• structural growth of agency work: penetration rates moving up over last decade


flexibility@work 2014 - tackling undeclared work job quality - a shared priority

12

april 2014


fixed-term

contracts

3,8

defining job quality

13

Source: London Metropolitan University, ‘Study on Precarious work and social rights’ (2012)


fulltime open-ended

3,9

parttime open-ended

3,8

agency work & payroll

3,7

(bogus) self-

employed

1,7

informal labor

1,2

un-employe

d

no L

MU

rati

ng

3,3

seasonal work

2,7

casual work

2,5

zero-hours

contracts

job quality rating based on:

• job security• job conversion• working time limits• discrimination protection• pensions• welfare• training• decent pay• representation

0 = lowest, 5 = highest


geographydue to availibility of relevant statistical data the research includes EU-28 countries and advanced OECD economiesalthough not included in this research, the statistical results also count for many emerging markets and countries like India & China

Flexibility@work2014: academic research on tackling undeclared labor

14

researchers methodtesting the traditional theories on causes of undeclared work on statistical evidencetwo traditional theories

´the undeclared economy is a direct result of high taxes, state corruption and burdersome regulations and controls´

´the undeclared economy is a by-product of inefficient regulation of employment and lack of labour market intervention and social protection´


what is undeclared work?

‘any paid activities that are lawful as regards to their nature but not declared to the public -tax, social security or labor law- authorities’

broad definition of types

undeclared work within a formal or informal enterprise, or what might be termed undeclared waged employment. Either wholly or partially.

own-account work for an enterprise or another client such as a household, conducted in a similar way to self-employment.

more socially embedded own-account work, delivering goods and services directly to consumers who are neighbours, kin, friends or acquaintances.

15


the size of undeclared workin % of GDP

6,17,5

8,0

9,1

9,7

9,912,2 13,

0

13,0

13,0

13,9

14,2

15,0

15,5

16,4

18,6

19,0

21,1

22,1

23,1

23,6

23,8

24,2

25,2

25,5

27,6

28,0

28,4

28,4

31,2

europemarket typemarket drivensocial dialoguelegislation drivenemerging marketrate of undeclared work

data 2013, derived from Schneider

6,6

10,8

north america

8,0

9,4

oceania

8,1

japan

source: randstad flexibility@work 2014

16


tackling undeclared work creates more competitive economies

0% 5% 10% 15% 20% 25% 30% 35%3.5

4

4.5

5

5.5

6

RO

IE

JP UK

PL

CY

ES

AU

CN

LU

MT

BE

PT

global competitiveness index

undeclared work

CH

US

IT

FR

SE

GR

HUBG

FIGE

NO

DKAT

SI

SK

LV LT

EE

HR

NL

NZ

CZ

market type*market driven

social dialoguelegislation drivenemerging market

RO


17

size of countries


tackling undeclared work increases business opportunities

18

tackling undeclare

d work

more jobs on the market

more talent on

the market

more money on

the market

potential growth of business opportunities

from an average of 15%-20% in advanced markets to over 60% in emerging markets


undeclared work affects business

unfair competitive advantage for illegitimate businesses over legitimate enterprises

‘race to the bottom’ away from regulatory compliance

loss of market potential forced to turn to the undeclared economy to compete

19


undeclared work affects workers

lack of access to health and safety standards

no access to legal and employment rights such as social security and pensions

low job security

loss of employability

constant fear of detection and risk of prosecution

20


undeclared work affects society

loss of revenue: non-payment of income tax, national insurance and VAT

loss of regulatory control over quality of jobs and services provided

damaging on social cohesion

creating a more casual attitude towards law in general

21


causes of undeclared workresults of the research into the two traditional theories

undeclared work thrives in inefficient labor markets as a result of:

no form of labor market policies to protect vulnerable groups

lower level of social protection

inefficient (too strict) regulation of temporary employment and agency work employment

difficulty for firms to resort to temporary employment and temporary work agencies to meet their labour demands

22

UK

AU

SE

JP

US

EE

LV

GR

PL

SK

HU

ITPT

SI

BE

ESCZ

FI

DK

IE

GE

FR

AT

NL

CNNZ

less restrictive regulation on agency work helps to reduce the size of undeclared work

LU

undeclared economy as % of GDP

strictness of regulationon TWA employment(0=least restrictions, 6=most restrictions)

5% 10%

15%

20%

25%

30%

0%0

0,5

1

1,5

2

2,5market type

market drivensocial dialogue

legislation drivenemerging market

size of countries




recommendations to tackle undeclared work

providing an efficient labor market infrastructure with:

appropriate social protection and labour market policy interventions for vulnerable groups

efficient regulation on employment and accessible formal flexible labor relations to help workers enter the formal labor market

alternatives for workers and businesses by making it easier for businesses to turn to temporary employment and agency work to meet their flexible labor demands

24

Thank you

Documents

Flexibility@work 2013/2014 IOE GIRN meeting